Mortgage and seperation

Jayprice1985

Me and my wife and in the process of possibly splitting up. To cut a long story short we live in a property that was bought for around £214,000 and 40k of this was help to buy. We have possibly around £15k equity if we sold it for the amount we paid but there is 20% to pay help to buy back and as we are on a fixed rate there is a £7,000 penalty to get out of mortgage as we are a fixed rate.

The Mrs would not be able to pay the mortgage on her own, it would be me that could afford the mortgage, but the question is - where do we stand? How can I buy her out if there isn’t much equity? End of day if she can’t afford it and I can would a solicitor tell her that?

Thrugelmir

Any children? If so who would they be resident with.

Jayprice1985

Sorry, we have a little one (2yo) and he would reside with the Mrs. But obvs when he grows up a bit then he woukd stay with me. Wouldd selling that place be better ?

Thrugelmir

Your young one requires a home. This will found a pivotal part of your separation agreement and financial arrangements. You both need to seek independent advice from a family law solicitor. As the situation is a little more complex than who can / cannot afford the mortgage. The property at the current time is somewhat secondary.

Jayprice1985

I get that and he won’t have a homr. But if she cannot afford to pay the mortgage on her own, and I can then she can rent? Surely if she can’t afford it, and there is no equity hardly then noting can be done?

Caz3121

she would be a single parent and receive benefits together with maintenance payments, she may well be able to afford it unless you have a very high mortgage
she may not be able to get the mortgage in her sole name but she may be able to service the current payments

Thrugelmir

Jayprice1985 wrote: »

I get that and he won’t have a homr. But if she cannot afford to pay the mortgage on her own, and I can then she can rent? Surely if she can’t afford it, and there is no equity hardly then noting can be done?

Could your wife afford the mortgage with the maintenance payments plus any benefits that she'll be entitled too. You'll remain named on the existing mortgage.