How to buy out your partner in a mortgage

rocco70

Can anyone give me any idea how much it would cost me to buy me x partner out of are mortgage we have five yrs and 9 months left to run on it we still owe £34000 and house was £90000 just need some idea how much is it gunner cost and how they work it out thank you if any body can help it would be appreciated 

Browntoa

Can you afford the whole mortgage on your own. It will be subject to normal affordability lending rules .

Virtually impossible to get a mortgage at this moment on time anyway

rocco70

Yes should be able to afford on my own 

greatcrested

rocco70 said:

Can anyone give me any idea how much it would cost me to buy me x partner out of are mortgage we have five yrs and 9 months left to run on it we still owe £34000 and house was £90000 just need some idea how much is it gunner cost and how they work it out thank you if any body can help it would be appreciated 

Are/ were you married? Is it part of a divorce settlement?

What is the current market value of the property? Have you agreed this with your X?

Does the outstanding £34,000 owed include any Early Redemption penalties, legal, or other applicable costs?

Do you own as Joint Tenants, or Tenants In Common? If TIC, do you own equal shares?

Have you each contributed equally? Initial deposit? Repayments? Improvements and maintenance costs?

Have you got the cash to buy your X out, or will you need a mortgage? Will your existing lender (or a new lender) grant a mortgage for the amount needed?

rocco70

 not married not sure what value is also we do own equal shares and yes both of us contributed equally. Well that’s what I’m asking I don’t know how much it would be to buy her out mate I’m just trying to get an idea what I would be looking at thank you 

chrisw

In simple terms it will their share of what's paid off. So £90k less £34k is £56k. 

If you own half each that's £18,000 each. So to buy them out you will have to pay them £18,000. So you will need a mortgage of 34+18= £52,000.

As suggested, there may be early mortgage repayment penalties of 1 or 2% and transfer and conveyancing costs of around £1000.

rocco70

Thank you Chrisw 

trex227

When did you buy the property?

greatcrested

chrisw said:

In simple terms it will their share of what's paid off. So £90k less £34k is £56k. 

OP said "house was £90000" from which I infer that's what they originally paid. That is now irrelevant.

What matters is what the property is worth now (after relevant costs) - hence my questions above.

No one can tell the OP what he wants to know without knowing what equity there currently is in the property.

chrisw

gareatcrested said:

chrisw said:

In simple terms it will their share of what's paid off. So £90k less £34k is £56k. 

OP said "house was £90000" from which I infer that's what they originally paid. That is now irrelevant.

What matters is what the property is worth now (after relevant costs) - hence my questions above.

No one can tell the OP what he wants to know without knowing what equity there currently is in the property.

Yes, good point, I missed that. The process is still the same but should begin 'current value minus £34k =' etc.

CookieMonster

I've done this, just over a decade ago. House bought 2006, separation in 2008 (housing crash).
Joint Account and Joint Mortgage paid from it, we were not married. I don't know if we were tenants in common, I don't recall.
I asked her what she wanted/needed: she asked me for £45K. 
Meeting at the bank to discuss the joint account and the mortgage.
The bank agreed to give me a "further mortgage" to cover the cost (£45K) of buying out my ex (the equity in the property and my salary allowed this).
This further mortgage amount was transferred to my ex as a deposit/portion of a new mortgage account (with the same bank), with an agreed total mortgage amount available to her based on having £45K 'deposit' and her salary - she went house hunting based on that.
Joint account became my account, my ex's cards were taken off her in the meeting and destroyed in front of her. Cheque books too.
This all happened in one single meeting which we both attended (as an amicable separation).
New cheque books were issued a little while later with her name removed.
Used a solicitor to deal with the paperwork for transferring ownership (the same one used when buying the house 2 years beforehand.)
Hope this is useful.