Remain on Mortgage - Remove from Title Deeds?

CSL0183

Hello,
I am in a complicated situation where I am separated from my ex wife but still own the matrimonial home with her. (We are not formally divorced or even separated but have been separated for years)

Time has come to buy a new home with my new family and being in Scotland, the 4% ADS (Additional dwelling supplement)charge has been muted. I have asked my ex to sell the home but she refuses as we have a child together who lives there. The house is worth around £175k with a £75k joint mortgage remaining so around £100k worth of equity. She has been paying the full mortgage for the last few years so I wouldn't go for the 50/50 split but would be happy with a 70/30 type arrangement. I think she would agree to that as she originally muted 60/40. Regardless, my ex wife is PT and only has an income of around £15k (Plus Child maintenance/ Child Benefit and any WTC that she may receive).
- She does not want to sell the property so that is not an option. I would feel uneasy about the upset and stress this would cause to my child.
- I appreciate we need a divorce but neither of us seem fussed about that at the moment, child involved, house involved, could soon run into thousands in legal fees. Deal with things (Like the house) step by step and to remain amicable.

Here comes the issue. In order to buy me out of the property she needs £30k. The only way for her to get this would be to release £30k of equity from the house and subsequently increase the mortgage term (For affordability) - There's about 10yrs left on the mortgage, she wants to increase this to cover that £30k buy out and keep her payments the same or even lower. Outstanding mortgage = £75k, further borrowing = £30k, Total required for remortgage would be £105k. She has a £15k employment income + the other sources I've mentioned and the maximum she will get is around the £70k mark.

Can we remortgage (Keeping my name on the mortgage) to the £105k, she pays me the £30k and then I remove myself from the title deeds? She's using me as a guarantor basically in order to meet the affordability criteria. Yes. I know I would then be liable should she default etc. Once the mortgage is paid down and she can afford to take it on her own, I am already off the deeds, she just applies for a single rather than joint mortgage? If this is not possible then I have no idea what to do next. Stay as I am on the title deeds and fork out £12k ADS that will be chargeable (£300k property x 4%). I would see this as extremely unfair to me as whilst I am on the title deeds, I have nothing to do with the property and haven't been anywhere near it since we split up.
Affordability of the £105k mortgage with my ex and the £270k mortgage with my 'new' partner wouldn't be an issue.

Any advice would be appreciated.

Thrugelmir

Consult a solicitor and deal with the legal aspects of your seperation in particular the financial ones. You need to have a financial consent order drawn up. This sets out the division of financial assets and prevents subdequent claims. The court by default takes guardianship of the child and protects their welfare. Whatever financial division of the property is agreed. The likelihood is that your wife and daughter will be allowed to remain in situ. At least until your daughter has left full time education. After which the agreed action in the consent order will need to be followed.