Being Bought Out of Mortgage/House - Advice Please

pappadruid

Hi all,

Hoping you can advise on this please.

I friend of mine (yes, asking for a friend! Genuinely!!) has separated from her partner.  They jointly own a house with a mortgage in both their names that they have been paying equally into.  He has offered to buy her out and retain the property but she has no idea how to go about this in the right way.  The simplest solution is to sell the asset and split the profit from the sale equally, but think doing it this way makes it a bit more complicated and she is worried that she may get taken advantage of.

Would appreciate some good advice from those who have been here or can advise appropriately.

Thanks!

[Deleted User]

If he wants to retain the house and 'buy her out' he'd firstly have to secure a mortgage on it - that would be in his own name so lenders will need to carry out affordability checks on him first.

K_S

pappadruid said:

Hi all,

Hoping you can advise on this please.

I friend of mine (yes, asking for a friend! Genuinely!!) has separated from her partner.  They jointly own a house with a mortgage in both their names that they have been paying equally into.  He has offered to buy her out and retain the property but she has no idea how to go about this in the right way.  The simplest solution is to sell the asset and split the profit from the sale equally, but think doing it this way makes it a bit more complicated and she is worried that she may get taken advantage of.

Would appreciate some good advice from those who have been here or can advise appropriately.

Thanks!

@pappadruid As long as the property is correctly valued, and your solicitor does their job, your ex buying you out should not disadvantage you compared to selling the property and divvying up the proceeds.

Essentially, in this scenario your ex gets a mortgage in his sole name and the mortgage proceeds are used to pay you your share. He needs to be able to afford the mortgage on his sole income. If he can't, then the only option to release your equity will be to sell the property.