Separation - buying a second house

anotheruser

Stvo8 said:

Hi All, sorry for jumping in on this thread but seems to have some good information being passed around and my situation is similar except I am not married to my sons Mum.
I am currently awaiting meetings with a Solicitor and Mortgage advisor but I wold be very grateful of a bit of info/help.

I will try and breakdown the key facts;

Not married or in a civil partnership but have been cohabiting for 10 years+ in England

Now separating (I moved out 4 months ago and have continued to pay all the household bills whilst I stay elsewhere)

We share an 11 year-old child together (CSA not an issues as this is black and white financially)

Almost 9 years into the mortgage, due to remortgage in 2 months time.

Ex wants to stay in the family home until our son is 18 (in 7 years) which she says her solicitor has said I have to continue paying the mortgage for the duration of this time. She is willing to split the mortage payments in half which is a bonus for me as up until this point I paid the mortgage alone, it is a joint mortgage in both our names.

I will be needing to find(purchase) my own home shortly and have no deposit so my issues is this.

I will be needing to use my half of the equity as my deposit, do I

A - need to sort this through our remortgage on the current property and release equity from the property which will obviously increase our payments which she will not be happy about.

Or

B (obviously the preferred option) – Can I remortgage the property now and at a later date when I find a suitable house use my half of the equity as a ‘deposit’ on my new house that is currently part of the equity towards our family home?

 

Some basic numbers for easy calculation

House Purchased for £150,000

Currently worth £200,000

Mortgage owed £100,000ish (51% LTV)

Thanks in advance.

You literally asked the same thing here:
https://forums.moneysavingexpert.com/discussion/6304025/separation-from-my-girlfriend-unmarried-house-mortgage-advice#latest

TBagpuss

@jayykayy I would talk to a good mortgage advisor and see what is likely to be possible in terms of each property. 

IF you own two properties in joint names then you are going to get hit with extra stamp duty, and potential CGT bills, and you'll be financially linked which means you can damage each others credit records. 

So: If the main house was transferred to your wife, could she get a mortgage in her sole name, and if so, for how much? (you ca have an arrangements where you have a legal charge over the property for a fixed percentage of the gross value, payable when the house is sold , the youngest child turns18 or if she remarried or cohabits)

If that were to be done, could you then afford to buy a new place with a mortgage, in your sole name.

So it could look like:

House A, worth £500,000, W had £100,000 mortgage
House B, worth £250,000, H has £200,000 mortgage

Total equity across both properties is £450,000, so H has a charge over House A for 35% of the house value, meaning long term you each have 50% of the available capital.

Factor in that if you are the higher earner it might be fair for ther to have a higher share anyway, so it might instead be a smaller charge back.

If that is not possible because you can't raise the funds for a deposit without using the equity in the larger house, 

it might make sense instead to have the main house remaining in joint names, a declaration of trust defining your shares and then have the second property in your sole name, with the DofT adjusting the interest in the first property to take account fo the equity in the second one. 

 You may want to build into any separation agreement provision for any CGT to be split any way. .

RalphT264

I was in a similar situation before, but we signed a notarized statement separating all assets and stating that our finances were completely separate, making it more difficult for her to pursue the house I was purchasing at the time.

BigStackP

Stvo8 said:

Hi All, sorry for jumping in on this thread but seems to have some good information being passed around and my situation is similar except I am not married to my sons Mum.
I am currently awaiting meetings with a Solicitor and Mortgage advisor but I wold be very grateful of a bit of info/help.

I will try and breakdown the key facts;

Not married or in a civil partnership but have been cohabiting for 10 years+ in England

Now separating (I moved out 4 months ago and have continued to pay all the household bills whilst I stay elsewhere)

We share an 11 year-old child together (CSA not an issues as this is black and white financially)

Almost 9 years into the mortgage, due to remortgage in 2 months time.

Ex wants to stay in the family home until our son is 18 (in 7 years) which she says her solicitor has said I have to continue paying the mortgage for the duration of this time. She is willing to split the mortage payments in half which is a bonus for me as up until this point I paid the mortgage alone, it is a joint mortgage in both our names.

I will be needing to find(purchase) my own home shortly and have no deposit so my issues is this.

I will be needing to use my half of the equity as my deposit, do I

A - need to sort this through our remortgage on the current property and release equity from the property which will obviously increase our payments which she will not be happy about.

Or

B (obviously the preferred option) – Can I remortgage the property now and at a later date when I find a suitable house use my half of the equity as a ‘deposit’ on my new house that is currently part of the equity towards our family home?

 

Some basic numbers for easy calculation

House Purchased for £150,000

Currently worth £200,000

Mortgage owed £100,000ish (51% LTV)

Thanks in advance.

I'm really interested in this being in a similar situation today. I'd add that ideally I don't want to sell the house now, I want to keep my wife and kids in it until my youngest is at least 18. I am hoping that I can raise enough deposit to get a second mortgage myself but will I be able to have my name on a joint mortgage and a sole mortgage at the same time?

RAS

Do calculate in that you'll be paying SDLT at the second home rate even if you don't live in your old home.