Mortgage - Going our separate ways

LidLicker

Hi,
Please dont gun me down. Its quite a straightforward question (or maybe not?) but I just wanted to get some input from people with more experience or knowledge of this situation.
I have a mortgage with my partner (not married) and we are both on the mortgage. We are basically going through tough times without going into too much detail, and our relationship could and likely will break down at some point soon. Now currently I pay 100% of the mortgage and all other bills because my partner is not working and hasnt worked since August 2019.
If we were to split, she would more than likely move out as I want to stay and and I can afford to keep paying everything off on my own (as I have been doing the last 14 months). I just wanted to know - in very simple terms - If this happened and I wanted to transfer the mortgage into my name only I may have to buy her out? Is this correct and if so what does that essentially mean?
Very sorry if this is a very straightforward question.
Thank you

MovingForwards

Value of property - outstanding mortgage amount = equity

Equity ÷ 2 = amount due to partner (assuming you agreed 50/50 on the property)

You will need to ask current lender / remortgage to your sole name to remove partner from the mortgage.

Lender affordability is calculated differently to being able to pay it / have been paying it from one income.

Is the basic explanation.

Depending on what the lender says / if you need a new mortgage, solicitors will need to be instructed to handle the conveyancing side.

getmore4less

What agreement was put in place when you bought the place?
Was any change made to that agreement when the contributions stopped?

LidLicker

Thanks for the comments so far guys!

So the other half stopped working before we moved house. She handed in her notice at her job at that point, and our last house was already on the market, which then sold about a month later. Then we moved and she hasnt had an income since.
Previously though when she was working, as I tend to do all the bills and the mortgage etc.... she used to transfer me £400 per month to contribute towards them.
When we moved house, we ported the mortgage!

Thrugelmir

The mortgage wouldn't be transferred. You would need to apply in your own right and meet affordability criteria etc. Whatever you decide to do, resolve the issues of both the mortgage and property ownership.  Deferring a decision to a later date is likely to cause greater problems. 

LidLicker

Thank you @Thrugelmir @getmore4less @MovingForwards
I take it if we split, and she walks away and doesnt want anything from the relationship (other than maybe some items in the house) I will still have to take out a new mortgage and have the affordability criteria checks done as I will then be living on my own and it will be solely in my name?

MovingForwards

Yes, otherwise the risk is 5 years down the line she could come back and ask for 50% of the equity at that point.

You need her name off the mortgage / title deeds for a clean break and no financial ties.

LidLicker

@MovingForwards Thank you very much!

dimbo61

Life is Never that simple 
What did each of you bring to the party ?
If your partner owned her own place and sold it when you bought the current property she may want her deposit/equity back.
Any kids ?
Can you afford to take on the mortgage yourself.
Your income, equity in the property, savings, etc all need to be considered.

LidLicker

dimbo61 said:

Life is Never that simple 
What did each of you bring to the party ?
If your partner owned her own place and sold it when you bought the current property she may want her deposit/equity back.
Any kids ?
Can you afford to take on the mortgage yourself.
Your income, equity in the property, savings, etc all need to be considered.

My partner was renting when I met her, then we moved in together.
No children.
I can afford to take on the mortgage myself, basically based on the principle I have been doing this since Agusut last year anyway. Just to make things a bit simpler I have already traded in my car for a much cheaper one, and cancelled other things such as Sky / Netflix just to cut down on costs.

yksi

LidLicker said:

No children.
I can afford to take on the mortgage myself, basically based on the principle I have been doing this since Agusut last year anyway. 

Affordability is calculated by the bank not by your personal ideas on how you budget and pay for things. You should probably expect that it will be about 3x your salary. So if the mortgage is £180,000 and you earn £40,000, you might have a problem, regardless of whether you had any issues meeting the repayments alone. There are lenders which consider higher numbers but it's not a good time for generosity from lenders and they are often more picky when it's a sole borrower on the loan.