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Buying partner out - high equity low affordability
Halfie
Posts: 132 Forumite
My partner and I are separating (not married) and I want to buy her out so we don't have to live together whilst property is sold.
Property valued at 375k and outstanding mortgage of 165k. We have a declaration of trust and going by that, it will cost about 65k to buy her out.
I earn around 38k p.a and it looks like taking on the 165k mortgage will just slip into affordability checks.
Would affordability be taken into account for a further advance or similar give there's a high amount of equity in the property (approx 145k) even after her 65k?
Property valued at 375k and outstanding mortgage of 165k. We have a declaration of trust and going by that, it will cost about 65k to buy her out.
I earn around 38k p.a and it looks like taking on the 165k mortgage will just slip into affordability checks.
Would affordability be taken into account for a further advance or similar give there's a high amount of equity in the property (approx 145k) even after her 65k?
0
Comments
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Equity has no bearing on affordability. £220k is what you'll need to raise to retain the property. Otherwise you'll need to rethink your plans.0
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