Switching to joint ownership

Pipplet

I currently own my house with around 50% of the value left on the mortgage. My partner is looking to buy but cannot afford anything suitable, I am also looking to extract value from the property to buy some land and start a new business venture (before he moved in I was considering downsizing or let to buy). Is it possible to essentially sell half my house to him and have him take out a mortgage for his half? Or if we have to be on a joint mortgage is there a way of extracting the value and keeping our financials separate? 

sammyjammy

You would have to apply for a new mortgage jointly, you can own the house tenants in common with different % shares but will essentially be tied otoeach other both practically and financially.

Given he was intent on buying property elsewhere maybe you need to consider your relationship and what you both want from it in this decision as well.

Pipplet

Thank you for your response @sammyjammy . Would it be possible to extract capital from the property this way? He has never had a credit card or borrowed money so it may be hard for him to get a mortgage and my financial situation has changed since taking mine out so I'm not sure I would be able to remortgage based on my income. If I were to switch to a joint mortgage and stay with my current provider would I avoid early exit fees? Or is there another way of avoiding these? 

He only started looking at buying a place himself because I said I wanted to sell, but I have said that I won't put it on the market until we have found the next place for him to live with his kids. He is keen to help me reach my goal of buying land and starting my business, one of his reasons for looking to buy was so I could live there with him whilst I sell my place. We are looking at all options that make it possible for me to extract capital to buy land, whilst also keeping a secure home for his kids. 

DE_612183

I presume you want something like this:

Say your property is worth £200,000 ( easy figures to use ) - O/s mortgage is £100,000.

You re-mortgage as a joint mortgage for say 80% LTV - that's borrowing £160,000 - £100,000 of that goes to paying off the existing mortgage company, and then £60k goes to you.

Of course the issue is that the £160k debt is joint - so if you split up / he's unable to pay - it all comes back to you.