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Joint Help To Buy Loan - Relationship Split

Hi, new here and new to reaching out for advice!
I am currently in a joint mortgage and joint Help To Buy Loan. We are nearing the end of the five year interest free period so originally we were considering remortgaging to pay off the HTB and leaving us with just the mortgage to pay (understandably increased due to the HTB cost). 
Our relationship has failed and we are looking at ways to navigate through the HTB and mortgage process. My partner is on a considerably better wage than me and is able to take the mortgage solely. Has anyone had any experience in settling the outstanding HTB loan? Could they take this over and remove me from this? With consent of course. Is there any ways around resolving the HTB loan? We were to Rd time buyers so very inexperienced with all matters relating to this.
Any help or advice would be much appreciated!
We do plan to seek professional assistance and guidance but whilst working through everything any shared experiences would be welcomed. Thank you 😊 

Comments

  • We were first time buyers apologies not we were to Rd buyers….!!! 🤦🏼‍♀️
  • Exodi
    Exodi Posts: 4,060 Forumite
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    edited 27 August at 2:57PM
    Well firstly, I'd check affordability - commonly a 4.5x multiplier is used by lenders - so if the balance of the outstanding finance is £225k for example, he'd need to be earning at least £50k to borrow the money in his sole name. Affordability is usually the biggest stumbling block in this scenario.

    If your ex can indeed afford to buy you out, it's entirely possible to have you removed from the HTB during the transfer (my partner did exactly this) - though as a heads up, they are not the fastest people to deal with.

    You will need a conveyancing solicitor to orchestrate the transfer of equity. I'd keep in mind that you might need to pay maybe a grand or so in fees for the whole thing, and think about how or who might be paying that.

    You'll also need to reach an agreement (AKA argue) on the house price. Inevitably your partner might suggest the price hasn't changed much in the last 5 years, whereas you might suggest it's gone through the atmosphere - you now have different motivations and it might be difficult to navigate (despite being amicable now).
    Know what you don't
  • amnblog
    amnblog Posts: 12,743 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    If your Partner is taking over the property and the mortgage whilst clearing the HTB loan they need only satisfy the mortgage Lender and get your agreement.

    If your Partner intends to take over the property and the mortgage and maintain the HTB loan, they need to satisfy the mortgage Lender and the Help to Buy Team, and get your agreement.

    Obviously, legal work to do either way.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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