Remortgage owned property after separating from partner

terratushi

Hi,

I'm separating from my partner with whom I own a house with. The value of the house is around £150k, paid off with no mortgage. I own £130k and my partner owns £20k.

In terms of available money for us both, I would like to help her out as much as I can and would prefer she has more than the £20k she owns of the property.

I have two scenarios where I am unsure as to what would happen.

1. We sell the house, take what's ours and we can settle finances privately

2. I remain living in the property and I would need to buy her out of the £20k she owns.
2a. As the property is already ours without a mortgage, is this where a remortgage comes into play?
2b. Can I take out a larger mortgage, such as £50k so I can give her more money? I guess the bank don't know how much either of us 'own' of the property.

I've read bits regarding remortgaging but from what I've gathered so far the most common reason is for extensions and home improvements where quotes may need to be provided to the bank to prove this. As I'd be wanting to pay out my partner, is remortgaging the correct process? Or, is the only option to sell the house and both start over?

Thanks

Simby

You can of course sell the property and distribute funds as you both agree.

2. Subject to being able to meet income criteria you can obtain a mortgage.. you will also need to transfer ownership solely to yourself.

With regard to the mortgage amount I am not sure if it is possible to get a mortgage for 20k as it is a relatively speaking low amount.

The amount of any mortgage you get is subject to your income and the banks lending criteria

terratushi

Hi, thanks for the reply. Ahh so rather than the £20k I first mentioned, I might need to ask for a larger mortgage anyway which would work out well for everyone. I shouldn't have any trouble obtaining a mortgage for £40 - £60k.. I just didn't know how it worked with lenders as it's not for home improvements, it's simply to pay off my partner - lenders are ok with this?

Socajam

I would remortgage for the 60K and give your partner the generous amount of 50K as you stated.
She is Extremely luck to have someone with your generous nature, others would just give her what she is due and to hell with it.
I would try and keep your legal fees as low as possible. Work out all the agreements between the two of you beforehand and then approach a solicitor to draw up the papers.
Tell the solicitor this is what both of you want, they are notorious for putting in their two cents to cause friction, thus getting them more money.
If your ex decides to go down the route of her solicitor, just give her what she is entitled to and no more.
Good luck and I hope it works out.
When I did mine years ago, I went to a broker. I also gave my ex more than what he is was entitled to because I would not want a long drawn out case.

terratushi

Hi,

Yeah I would be thinking similar around the £60k mark to allow for any fees and also keep some money aside for the future if I need it.

Thanks for your advice and heads up around solicitor tricks. We're on good terms so there wouldn't be any issues with disagreements over anything and we'd both be happy to resolve it in the simplest and cheapest way.

Also, thanks for your kind words on a personal note. We've been a big part of each others lives so I wouldn't want to see her struggle and not be able to find somewhere of her own. :beer: