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Deposit required to buy ex out of our mortgage?
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Legacy_user
Posts: 0 Newbie
Hello all,
I have put together an offer to buy my ex out of our mortgage.
The offer is a lot more than she'd receive if we had to sell jointly, means she doesn't have to wait a year or two to sell the property, and I have offered to waive her payments for the remainder of our current mortgage (approx £12k).
She is however demanding that I pay a deposit on exchange of £10k which she gets to keep should I not complete (can't see why this would happen, short of serious injury). On top of keeping the deposit she also wants to retain her half of the house.
Am I being unfair in thinking she just wants to have her cake and eat it? Am I under any obligation to pay a deposit in this scenario? I believe the "normal" scenario of an external buyer would get to keep the deposit but then they don't already own half the house.
I have bent over backwards to be fair and give her a very reasonable offer which she would definitely not receive on the open market.
I can see her point that she wishes to buy elsewhere and would have to pull out should I not be able to completed.
But my inclination is that she must also accept some risk to resolve this situation quickly, given all the upsides that have been laid out for her.
I'd be grateful for any thoughts.
Thank you!
I have put together an offer to buy my ex out of our mortgage.
The offer is a lot more than she'd receive if we had to sell jointly, means she doesn't have to wait a year or two to sell the property, and I have offered to waive her payments for the remainder of our current mortgage (approx £12k).
She is however demanding that I pay a deposit on exchange of £10k which she gets to keep should I not complete (can't see why this would happen, short of serious injury). On top of keeping the deposit she also wants to retain her half of the house.
Am I being unfair in thinking she just wants to have her cake and eat it? Am I under any obligation to pay a deposit in this scenario? I believe the "normal" scenario of an external buyer would get to keep the deposit but then they don't already own half the house.
I have bent over backwards to be fair and give her a very reasonable offer which she would definitely not receive on the open market.
I can see her point that she wishes to buy elsewhere and would have to pull out should I not be able to completed.
But my inclination is that she must also accept some risk to resolve this situation quickly, given all the upsides that have been laid out for her.
I'd be grateful for any thoughts.
Thank you!
0
Comments
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I have offered to waive her payments for the remainder of our current mortgage (approx £12k).
A mortgage is a joint and several liability. There's no his and hers as far as the lender is concerned. If one of you doesn't pay then the other remains liable.
By mortgage , I assume you are actually referring to current product. Which runs for a while longer.She is however demanding that I pay a deposit on exchange of £10k which she gets to keep should I not complete
Exchange of what? You aren't buying the property from her. There'll be a transfer of equity. Providing you can raise the funds to buy her out this will be a seamless process. Is your ex concerned that she'll move out and you won't effect the purchase from here?0 -
You are not buying her out of the mortgage.
You are buying her share of the property and taking her off the mortgage.
To do this you need the agreement of your lender ( who are happy with your income and size of mortgage ) and your EX agreeing to What she thinks is a fair share.
For example :
Property is valued at say £200,000 and outstanding mortgage balance is £100,000 so you have £100,000 of equity.
If your EX is happy to accept 50% so £50,000 and your lender is happy to increase your mortgage to £150,000 you can remove her from the deeds and the mortgage.0 -
There might be some confusion here, but I wouldn't expect there to be a pre-completion contract in this scenario, in which case there's no "exchange", never mind a deposit payable on exchange. If completion doesn't happen then you're both still where you are now.0
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