Remortgage / Partner Buyout

onafriday

Myself and my partner own a house together. We're going through an amicable separation (we're not married) and I want to keep the house and buy her out. I'm lucky enough to be able to take on the whole mortgage as it is (removing her from the mortgage) but I want to release some equity to buy her out with, which I should be able to do, once I receive a promotion at work, but I'm generally quite confused as to what order I need to do things in:

- I need to remove my partner from the mortgage - requires the lender? Or solicitor? Or both?
- I need to release equity from the property - should this be done while we're still joint owners?
- Once the buyout money is released can I just transfer it to her myself? Or does this need to be done in conjunction with the removal of her name from the property? Via solicitors?

She's happy to have her name removed from the property before money is released (we're not trying to screw each other over and I want her to have the money) if that makes things easier.

It's all very confusing!

Thank you!

jst1986

A solicitor will be able to do you a transfer of equity and handle the funds. 

Thrugelmir

You need to remortgage in your own name. This will require a new application. Borrow the amount of money that's required to buy your partner out. The solicitor will handle all the legal aspects of the transaction likewise ensure your partner gets paid. 

onafriday

Thrugelmir said:

You need to remortgage in your own name. This will require a new application. Borrow the amount of money that's required to buy your partner out. The solicitor will handle all the legal aspects of the transaction likewise ensure your partner gets paid. 

Thanks for the help!


Does a new application mean a whole new mortgage though?

The mortgage is a joint mortgage, so I don't understand how I can remortgage in my own before removing my partner from the mortgage / property deeds.

Should I speak to a solicitor first about this or my lender?

jst1986

The new mortgage would start at the time your partner is removed from the deeds, the new mortgage would essentially 'pay off' the balance on the existing mortgage.

I'd perhaps speak to a solicitor first as it sounds like you could do with the process explaining first which they would do. 

Thrugelmir

onafriday said:

Thrugelmir said:

You need to remortgage in your own name. This will require a new application. Borrow the amount of money that's required to buy your partner out. The solicitor will handle all the legal aspects of the transaction likewise ensure your partner gets paid. 

Does a new application mean a whole new mortgage though?

The term mortgage actually relates to the legal charge placed on the proprty to secure the debt. Otherwise it's just a loan that needs to be underwritten like any other application for finance. With one borrower being removed, the lender will need to process a new application.