Buying out partner

Gts1971

I am currently going through a divorce with no children involved.
I am a 52 year old looking to buy out partners share of property but am struggling to get a mortgage on affordability. The property has been valued at £280000 with an existing mortgage of £65000 so would be looking to borrow an additional £107000, the most I seem to be able to borrow on my income is £150000 so there is a shortfall of around £22000.
I currently have no other debts ie credit cards, loans up etc and I intend to stay in this home and not move in the future. Ideally I would like to either sell a % of the property & pay rent or sell the entire property and pay rent but I believe this is a risky thing to do as you could still be evicted.
Any suggestions or thoughts would be greatly appreciated. 

JM68

If you can't afford to buy out your ex in full then the only real options are either sell, clear mortgage, split proceeds, and buy something new with the mortgage you can get, or come to some sort of agreement with your ex e.g. they retain a charge for x% of the property if you give them less than market value for their share.  This all assumes your 50/50 calculation is what you agree or what the court decides if you don't.

I don't think there are any viable options to get a third party to buy a percent of the property until after you own it all (e.g. you could do equity release but only after you buy out the ex in full I think).  Nor sell it to someone and then rent back from them (other than by some sort of agreement which, as you say, probably would mean you can get evicted after a period of time).

TBagpuss

You can't generally sell a % of a property.
If you can't afford to buy her out then it's likely that the house will need to be sold, unless your former spouse is willing tp agree a compromise, or there are any reasons why it would be fair for you to retain more than 50% of the assets. (50/50 is normally the start point, but  as the aim is to be fair, it may be fair for you to have more than 50% if, for instance, you have a significantly lower earning capacity, are older (so fewer years to retirement) or have higher needs (e.g. if you need this specific house because of adaptations for a disability, or anything of that kind). Equally, if any of those factors apply to your spouse, they may be entitled to more than 50% of available assets so the shortfall could be higher. 

Are there any other assets except the house? If you have any pensions, then it might be possible to offer your ex a higher share of the pension to offset you having a bigger share of the house.

If you re on good terms, there would be nothing ion principal l to prevent you having an agreement that you pay them £85,000 now and they have a second charge over the house entitling them to a further lump sum equal to 7.8% of the house value at a set later date (again, if you have pensions, are you likely to be able to draw down a lump sum at 55 or 56?) Obviously this would only work if they were willing to wait for part of the money and if you were confident that you would be able to pay the when the due date came round, whether from a pension lump sum, or buy working a second job / taking in a lodger / whatever and saving hard. 

It looks as though, on your figures, if the house was sold you would each  have around £100-£105K as a deposit, so if you can borrow£150K you would have around £250K available to you to rehouse yourself. Is that enough to let you buy somewhere in your area, even if you can't stay in the current house? 

gwynlas

Are you looking with the help of a mortgage advisor or simply through standard products? Your shortfall on current criteria is only £22000 which over the lifetime of a mortgage appears very little so should be surmountable. Renting out a room could earn you over £7000 per year tax free. Is your salary likely to rise? Have you got good pension provision? Do you have an agreed financial settlement otherwise? Are you able to take on a long term mortgage or limited to SP age, Rather than looking to sell a proprtion of your current home it would be more advisable to sell whole property and purchase something that you can fford on your own as rents will continue o rise and you have little security of tenure