Buying out vs new mortgage

WriterMum

I have recently separated amicably from my husband, and we are in the process of having a consent order drafted, which includes details of what happens to the family home. It states that I will stay in the house with our three children, and that it will be sold when our youngest turns 18 (he is currently 3) or upon my re-marrying or moving another partner into the house or at a point where we both mutually agree to sell. The equity is going to be split 65/35 in my favour. It turns out that I am also “entitled” to some of his pension, and we have decided that it is better for both of us if this amount is offset against the value of the house, and will be taken out of his 35% at the time of sale. My name is not currently on the mortgage.

My question is this.  We have discussed the possibility of me “buying him out” at some later date, but I am a little hazy on what that would entail and trying to get a firmer grasp on things so I can plan for the future.  I am assuming we would need to put my name on the mortgage for a start for this to happen. As it stands, the offset figure for the pension would actually cover paying for the majority of his 35%; would it therefore just be a simple matter of transferring it all over into my name, or would I need a deposit/funds separate from the equity that is tied up in the house? In the buying out scenario, I understand that I would basically be taking over the existing mortgage.

Another option that we mooted was if I buy the house rather than buying him out, which wouldn’t require my name on the mortgage beforehand. If this scenario, again, would I need a deposit separate to my 65% plus offset figure that is tied up in the house in order to apply for a mortgage and buy the house from him?

I hope that makes sense; any advice/information would be much appreciated. 

Thrugelmir

Can you afford to buy your ex out?  Borrow enough to clear the existing mortgage plus whatever share of the equity is agreed upon. 

getmore4less

WriterMum said:

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Another option that we mooted was if I buy the house rather than buying him out, which wouldn’t require my name on the mortgage beforehand. If this scenario, again, would I need a deposit separate to my 65% plus offset figure that is tied up in the house in order to apply for a mortgage and buy the house from him?

I hope that makes sense; any advice/information would be much appreciated. 

They are basically the same thing  you end up owning the house with a mortgage.

If you agree to take the house and he keep the pension you have all the current equity as your deposit.

Can you get a mortgage to replace the existing one on that basis with your income

Existing lender may be happy with the numbers if not then probably best with a broker if the income is not single earned source to match up a suitable lender that will accept

Who is going to be responsible for paying the mortgage after the split. 
How is the equity split getting calculated going forward,

Important because if you are responsible for the mortgage an the 35% is free equity you are paying for his increase in equity