Do you think we could get a mortgage...?

Exodi

silvercar said:

I would think less than 50/50 may be a better assumption on the grounds that (a) he has some responsibility to pay for housing for his children

Some might feel it is safer to pay child maintenance than individual bills, to mitigate the risk of being pursued for full child maintenance regardless. If child maintenance is also intended to be pursued through the CMS, then that would be fulfilling his legal responsibility to pay for his children (including housing).

I appreciate that he can pay the mortgage and have it considered as part of the CMS calculation (as one of the rare expenses exceptions), though I don't know how how the maths on this will add up in this particular scenario. I'd imagine financially it would be better to just pay maintenance.

Of course this is all separate to someones moral responsibility or desire to provide for their kids.

silvercar said:

(b) being removed from the mortgage has a value to him in not being liable for a debt and being able to get a mortgage himself if he wants to buy. If you can only get a mortgage that will give him less than 50% of the equity he may accept it.

Agreed.

booboo85 said:

Well the other thing hes said is that if he can get off the mortgage, he wont take any equity. He just wants off it.

I dont know if thats even possible, why he would do that, and what implications it has on me.

I find that quite incredible. Out of interest, who broke up with who? Did you break up with him per chance? The reason I ask is it's quite common for the ex to be generous and amicable while it's still fresh and there may be the prospect of rekindling - it's a different thing entirely a few months on having him sign away his tens of thousands of pound of equity, perhaps after he or you have met someone else.

Currently (assuming you split the equity), you need to meet affordability for £145k, which at a typical multiplier of 4.5 requires income of ~£32k p/a.

If he was to allow you to keep the equity, you'd only need to meet affordability for £111k, which at a typical multiplier of 4.5 requires income of ~£25k p/a. If this offer is serious, is there the potential to increase your income here? It's much cleaner than buying with your dad.

Likewise, I'm not clear on what benefits may be allowable in your affordability assessment.

thegreenone

If you have no benefit from the other house, could your relative buy you out?  It seems an unusual situation not to received anything.

If Dad is going to be living with you and paying rent, would that be included in the calculations?

booboo85

Hes said that he doesnt want anything out the house and hes prepared to sign any documents to say this.

He says his reasoning is that he wants to get a mortgage with his new partner, but also wants to make sure our kids have a roof over there head, however he has then on the other hand said that if i cannot take the mortgage on, we would need to sell the house, which effectively puts the kids on the street, so i take what he says with a pinch of salt.

Ive contacted a broker who has said that they dont think my dad could get a mortgage with me as they would only offer a max term of 10 years and it would make the payments astronomical!

So i dont know whats going to happen. All i know is that it stresses me out daily.

Exodi

booboo85 said:

Hes said that he doesnt want anything out the house and hes prepared to sign any documents to say this.

He says his reasoning is that he wants to get a mortgage with his new partner, but also wants to make sure our kids have a roof over there head, however he has then on the other hand said that if i cannot take the mortgage on, we would need to sell the house, which effectively puts the kids on the street, so i take what he says with a pinch of salt.

It would just appear he doesn't want to get stuck on a mortgage long term on a house he doesn't live, forced to rent and unable to buy another with a new partner. Many can empathise with that. 'Effectively puts the kids on the street' is ridiculous and melodramatic, you'd have the proceeds of the house (potentially £35k-£70k) in your back pocket so it's not like you'd be unable to re-house yourselves, and even if you didn't have that wodge of cash, local councils place single mothers with children at the very top of their priority lists. The possibility of being 'on the street' is close to zero - emotional rhetoric like that is a cancer to amicable resolution with an ex.

I am curious whether he would suggest splitting the equity if you sell.

booboo85 said:

Ive contacted a broker who has said that they dont think my dad could get a mortgage with me as they would only offer a max term of 10 years and it would make the payments astronomical!

I really think you should abandon this idea of buying with your pensioner father.

If you've consulted a broker, what do they assess your maximum mortgage raising capability as? You need ~£25k p/a of income to take out a mortgage to take on the mortgage (assuming he gifts you his equity), I wonder how close you are and what benefits are considered.

We also keep glossing over the fact you co-own another property with a family member. Is there not the possibility to agree a transfer of equity with the co-owner for an increased share of that property?

booboo85 said:

So i dont know whats going to happen. All i know is that it stresses me out daily.

Nothings going to happen if you don't make it happen. No-one will solve this for you.

Either you can find a way to take the mortgage in your own name or you will have to sell the house.

Dragging your feet so you can carry on living in the house with him on the mortgage will only cause tension between you both and may cause him to renege on his offer of gifting you his equity.

jimjames

booboo85 said:

sgthammer said:

Do you receive any income from the rental property you co-own?

Personally no, this goes to my family member, but we both so a tax return every year on this.

It's up to you whether you want to explain it but that seems a very odd situation and one that could make a big impact on your affordability. If you don't actually receive any income do you have to declare anything on your tax return. What's the reason for not getting any return on your equity? Can you sell that house to get money towards a place to live in?

Uriziel

Maybe it should be the opposite and he should buy you out? Then you can use the money to get a mortgage out on a different property that you can afford on your own?