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How can ex buy me out of house?

[Deleted User]
[Deleted User] Posts: 0 Newbie
Second Anniversary 10 Posts
edited 28 July 2018 at 9:44AM in House buying, renting & selling
Hi looking for some guidance. Just over a year ago me and my ex bought a new build house using HTB. We had a 5% deposit and 20% HTB. Everything is 50/50 in the house legally and we have paid equally over the last year.

Fast forward a year we have separated and it!!!8217;s all very amicable. We are both still living in the house. He has tried to get a mortgage to buy me out, but hasn!!!8217;t been successful. He would be successful in getting a mortgage of the current value, however he is being told that he would have to get a mortgage to cover the full price of the property and repay HTB. That adds approx 80k to the mortgage which he cannot afford. He has spoken to mortgage lenders and is stuck, and his parents can!!!8217;t be guarantors.

We have put the house on the market, but we are on a new development with many new builds still for sale and have had no interest. Have already dropped the price and accepted we will likely be at a loss of cash but not yet at a price point of negative equity.

I have found the house I want and have a offer which has been accepted should my house sell.

Long story short: the house is not selling. Is there any creative way that he could stay in the house? He would like to.

Thanks!!
«13

Comments

  • quantumlobster
    quantumlobster Posts: 510 Forumite
    Sixth Anniversary Combo Breaker
    Are his parents sufficiently cash-rich to give him the money to reduce the amount of borrowing required to a level where he can get a mortgage?
  • sal_III
    sal_III Posts: 1,953 Forumite
    Fifth Anniversary 1,000 Posts
    How much equity do you have? Can your ex afford to keep up the repayments on his own?

    Napkin math says you have 30-40k combined equity if you didn't heavily overpay the mortgage.

    If his "cash rich" parents can't give him 80k for the re-mortgage, maybe they can buy you out so you can move on. Not really sure if this can be done "above board" with the HTB equity loan in-situ.

    Short of that it's just a waiting game to sell the property.
  • ACG
    ACG Posts: 24,714 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    I would suggest not taking any payment unless your name comes off the deeds of the property.

    SOOOOO many times on this forum we see people not deal with the issue at the time and down the line one persons desire to remove their name outweighs the other which then causes issues.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    Sell it and take the hit.
  • sal_III
    sal_III Posts: 1,953 Forumite
    Fifth Anniversary 1,000 Posts
    edited 13 February 2023 at 5:37PM
    Deleted User wrote: »
    The equity is around 30k. I!!!8217;ll speak with him again about his parents, but he is pretty resistant to them actually giving him money vs them just being a guarentor.

    I won!!!8217;t be removing myself from anything until this is sorted as I need to live here - nowhere else to go - until I can buy a new place either from him buying me out (and being removed from deeds) or selling it.

    Thanks for the responses so far
    Hi might not have a choice. It's asking his parents for money or losing most of the equity selling.

    In your other thread you said that there are new builds in the same development £10k cheaper than your listed price. Unless you undercut them, you are very unlikely to be able to sell, which will mean losing at least £10k + any SDLT and fees you paid for the purchase + any fees you will have to pay for the sale
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You'll just to have bide your time until the property sells. At least the mortgage debt will be reducing every month as each repayment is made.
    I have found the house I want and have a offer which has been accepted should my house sell.

    The vendors will no doubt be continuing to market the property to see if a more procedable buyer materialises. Offers are easy to make in principle.
  • GDB2222
    GDB2222 Posts: 26,513 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    How do you work out the £30k equity?
    No reliance should be placed on the above! Absolutely none, do you hear?
  • GDB2222
    GDB2222 Posts: 26,513 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 13 February 2023 at 5:37PM
    Deleted User wrote: »
    18k deposit plus 12k mortage payments

    But it's a secondhand house and no longer eligible for HTB.
    No reliance should be placed on the above! Absolutely none, do you hear?
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    edited 13 February 2023 at 5:37PM
    Deleted User wrote: »
    18k deposit plus 12k mortage payments

    Is that the payment or the capital part of the payment?

    18k deposit 5%, 20% HTB £72k mortgage £270k

    £270k over 25 years at 3% £1280pm capital paid off in Year 1 £7.5k
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 13 February 2023 at 5:38PM
    Deleted User wrote: »
    How does that affect my equity?

    A 20% share of the increase in valuation when sold is paid across in lieu of interest free debt. Not totally free money.
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