Post-divorce mortgage question

Hi,

Situation: Just divorced, one child (6). I rent a flat. All amicable. I pay amount we agreed prior to separation for child costs, bills, etc. Our plan was that in Dec 2020, when the council house deposit/discount becomes capital we own, my ex would buy me out. I would continue to support, she would stay in the house and I’d have a lump sum to use as deposit elsewhere.

Worry: my ex only works part time. I’m not sure how she is going to buy me out. Anyone got any ideas for options? I should point out I’m looking for friendly options, not ways to force her out. We still get on, I just need ideas for how she might be able to release the money that’s mine.

Many thanks

Comments

  • How much is due to you, how much is outstanding on the current mortgage and how much does she earn?

    Does she have any debts, HP, catalogues, credit card etc?

    Any missed / late payments or other prior credit issues?

    Rough figures so people can offer advice :)
    Mortgage started 2020, aiming to clear it in 2026.
  • TBagpuss
    TBagpuss Posts: 11,198
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    She will need to remortgage, so it is about how can she maximise her mortgage capacity.

    Some lenders will include child support in looking at someone's mortgage capacity, but may want to see that it is recorded in a court order or a formal assessment from the CMS.

    She may be able to get a mortgage over a longer period than your current mortgage - e.g. over 30 years or until she is 67, rather than a 25 year mortgage / mortgage until she is 65.

    Another thing to consider is that she might be able to remortgage to get your name off the mortgage, but then for you to have a charge over the house and an entitlement to your share of the equity a little later It's not ideal for you as you don't get your money so soon, but may be the most practical first step,
    All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)
  • BAFE
    BAFE Posts: 267
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    Forumite
    The logical answer would be for your ex to work full time and for your child to live with you. Even if she manages to increase her earnings, she still has to pass affordability checks and its difficult to do that when you're paying for childcare.
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