Separating no mortgage can I get a mortgage to buy partner out?

stressedoutmum

I posted a few weeks ago on another thread my husband has left me after 32 years together - this is around 6 weeks ago.

We are still separated with no chance of a reconciliation (he totally doesn't want to). Our boys are adults aged 22 and 19 so no young children. Our house is valued around £140,000 and we have no mortgage - it was paid off about 5 years ago. So around £70,000 equity each.

I'm looking at my options and hopefully being able to stay in the house and buy my husband out but I don't know the options.

I'm 57 in April and although I was planning to semi retire aged 60 I now need to work to state pension age which is 67 for me so I would like to have it paid before then. I work full time and earn around £24,000 per year gross - take home net after deductions us £1575. I would need as much as the £70,000 I could borrow because I only have about £1,000 savings. My bills and food etc come to around £800 a month.

My 22 year old is trying to buy his own house just now and has suggested if I get the mortgage he will half me with it effectively owning 25%. While he can afford his own eventual mortgage his income would definitely not let him have a second mortgage to joint buy with me if that makes sense.

Not discussed this with OH until i know my options. I don't want to move home so I'm trying to stay in the home.

My future thoughts that if this were possible then I would rewrite my will to incorporate my son's contributions plus his share of the balance if that makes sense.

Thank you

bowf

So you're looking to borrow £70000 over a maximum of 10 years?
Theoretically, your earnings should allow you to borrow £70000, but I'm not sure if they'll allow you to borrow over 10 years as they may class that as too high a monthly payment (say around £650 per month).
I know your son says he will help you, but he doesn't want to go on the mortgage application.
Perhaps you could declare his 'help' under 'other earnings'?
That way your £1575 per month would become £1875 per month (or whatever).
It's a frustrating situation I've been in before where I got divorced and desperately wanted to keep the house, but the 'rules' about mortgages simply wouldn't allow it and I had to sell.
Go speak to an advisor.

Thrugelmir

What pension provision do you have? To continue the mortgage into your retirement years you'll need to demonstrate a secure income.

Is 50% of the property and a £1k in savings the extent of your potential financial settlement on divorce?

robatwork

If HB was a higher earner than you and perhaps you took time off to raise your children, then you will have a big claim on his pension. It's possible that will be worth £70,000 or more, so you may be able to come up with a deal where it's in his favour to just sign the house over to you.

Of course just wild speculation on my part but this is sometimes overlooked by separating couples who've been together a long time.

stressedoutmum

I was hoping to pay mortgage off just before retirement age or to coincide with it so if it was possible to fully retire at 67 the mortgage would be paid.

I have 2 small pensions one for around £3,500 a year which I can claim at 60 with around £10,000 lump sum and similar for second pension which is in my current job but not payable until state pension age as I would lose quite a bit to take it earlier.

He does have a small pension due as he had half pension due for the forces for 12 years service and I don't know what his current job pension is worth as he's been in it for around 25 years but I'm really trying not to touch his pension as he has worked for it.

With regard to the other income part where I could add my sons £300 contribution taking my income to around £1800 per month would I be asked to show evidence of I'm not sure how i would prove this. Thanks

miss_undastood

Can you son start paying you the agreed amount now as board &lodgings

Thrugelmir

stressedoutmum wrote: »

He does have a small pension due as he had half pension due for the forces for 12 years service and I don't know what his current job pension is worth as he's been in it for around 25 years but I'm really trying not to touch his pension as he has worked for it.

Everything will be factored in the final settlement. No doubt you were at home looking after the children for many years. While you won't touch his pension , there's no reason why you won't receive a bigger share of the property equity as compensation. 25 years pension is going to be worth a reasonable sum.

Seek advice and guidance before agreeing to anything. .

comeandgo

Can you get a valuation of his pension? Half of it would be considered yours in the financial divi, just as half of yours would be his, so maybe the house could be split 30:70 in your favour.

stressedoutmum

My son already pays me £150 a month for board which I was fine with as he is trying to get on housing ladder and whilst I'm not having to pay a mortgage just now I don't need anymore from him.

Was trying keep things amicable between us and stay away from his pension because I know he wont be happy about it and would be willing to negotiate a cut in his share of the property and allow him to keep his pension perhaps as suggested. Does anyone know if there is legal costs for pension estimates or getting this agreed as I don't want legal bills. Thanks.

Thrugelmir

stressedoutmum wrote: »

Was trying keep things amicable between us and stay away from his pension because I know he wont be happy about it

You need to put yourself first. Divorce is life changing. Of course he won't be happy. As knows the potential outcome.

comeandgo

Both myself and my now husband are divorcees and when we had to get pensions valued there was no charge. You or your husband if it's his pensions just write and ask for pension fund value at whichever date you want. For my husband it was at date of separation, maybe it's different in England.