Looking to buy out Partner's Ex Husband from his share of the Property

DubyaKay

Hi There


New to all this forum malarkey and thought i'd pose this question to you all.

Basically, I have proposed to my Partner and we intend to get married next year. However, I have now moved into her house and have triggered a clause in the divorce agreement with her Ex Husband. We knew this would happen and now we have 12 months to arrange our own morgage and essentially buy him out. There is 10yrs left on the current morgage and his equity share (he would ge back out from me buying him out) is roughly £40k.


What is the best way to go about either...

Renegotiating a Morgage?
Taking a Loan to pay him off?
Remorgaging and joining my parner's Morgage?


Are there other options? My last property was rented and I have very few savings.


Would be great if anyone has experienced this before or can at least point me in the right direction.


Cheers in advance!




Dubya Kay

saajan_12

DubyaKay wrote: »

Hi There


New to all this forum malarkey and thought i'd pose this question to you all.

Basically, I have proposed to my Partner and we intend to get married next year. However, I have now moved into her house and have triggered a clause in the divorce agreement with her Ex Husband. We knew this would happen and now we have 12 months to arrange our own morgage and essentially buy him out. There is 10yrs left on the current morgage and his equity share (he would ge back out from me buying him out) is roughly £40k.


What is the best way to go about either...

Renegotiating a Morgage?
Taking a Loan to pay him off?
Remorgaging and joining my parner's Morgage?

Are there other options? My last property was rented and I have very few savings.

Would be great if anyone has experienced this before or can at least point me in the right direction.

Cheers in advance!

Dubya Kay

What is
a) current property value
b) outstanding mortgage balance

If there is enough equity in the property, and your total income as a couple can support it, then you could apply for a new mortgage on the property to pay off the current mortgage and pay ex-husband's equity. Then partner+ex 'sell' the property to partner+you with the new mortgage. Ex's name is removed from the deeds and yours is added.

The new mortgage could be with the same or different lender, though note they will likely want to carry out a survey/valuation. This also gives you a chance to get a new fixed deal theoretically at a lower rate than the SVR rate on the current mortgage.

If you can't raise a mortgage to cover the current + 40k then start looking for other options eg 2nd mortgage

TBagpuss

Treat it like any other house purchase. You + Partner are buying the house from partner+Ex.

You and partner will need to apply for a mortgage for £current mortgage +lump sum due to ex. That can be with the same lender she is currently with, or with a different lender. Shop around to find the deal which works best for you.

You will presumably want the house to be transferred from the names of your partner and her ex,to your joint names (or from her sole name to your joint names).

It is likely that re-mortgaging will be a better option than your partner trying to get the existing mortgage into her sole name and for you to take out a separate loan to buy him out.

When you talk to the mortgage adviser you can decide whether it makes sense to try to take the new mortgage over 10 years or over a longer period. If it is taken out over a longer period you can always plan to over pay (or put money aside) to pay the mortgage off early.

Before you make the mortgage application do double check the wording of the order about how the lump sum to the ex is calculated, to make sure that you have enough to pay it off, once you have teak into account the conveyancing costs, any fees etc.

Grezz24

have you looked into the option of selling the house completely, and using the equity your partner has in there for a fresh start in a different property elsewhere?