Buying ex out advice

kkson

Ex partner and I separated 6 months ago (not married) and he has agreed to me buying him out for 20k, had a DIP and all was going well (eventually, after months!), but have hit a snag in that my affordability wasn’t input correctly (I did provide info, applied directly, lenders mortgage advisor missed it) so now the lender is only able to lend me enough to cover the mortgage, not the additional borrowing. 

Ex doesn’t want to wait for the money so not interested in getting legal charge/deed of trust. 

I really don’t want to lose the house, we have a young child. If we have to sell then I’ll have to suck it up but really hoping I can find some other way. 

My new mortgage will be JBSP with a parent so second charge not really an option but I have looked into.

I have over 25k sitting on credit cards that I could access (all balances at 0), so I wondered if we could do the remortgage and transfer of equity then I could money transfer from my credit cards, bit by bit over a period of time so I could pay them down as I go and balance transfer at the end of my 0% etc. I think he’d be happy if he got something at least initially (just after completion) 

Would I need to involve a solicitor for that or declare it and pay further stamp duty etc? I’m trying to find a last way forward as I’m so close, before giving up and putting on the market but don’t want to do anything that isn’t technically allowed

Exodi

kkson said:

Ex partner and I separated 6 months ago (not married) and he has agreed to me buying him out for 20k, had a DIP and all was going well (eventually, after months!)

Great news, many struggle to reach an agreement!

kkson said:

but have hit a snag in that my affordability wasn’t input correctly (I did provide info, applied directly, lenders mortgage advisor missed it) so now the lender is only able to lend me enough to cover the mortgage, not the additional borrowing.

I'm not clear on what you're saying here. Who made the mistake?

You say you provided the info - is that to suggest you provided it correctly?

What is a 'lenders mortgage advisor'? Lenders provide mortgages, they don't need/use advisors!

I guessed you maybe meant the mortgage broker you used miscommunicated the info you provided, but you specifically said you "applied directly" - aka didn't use a broker.

It's not clear how you're suggesting the mistake happened.

kkson said:

Ex doesn’t want to wait for the money so not interested in getting legal charge/deed of trust. 

That's fair enough really. Shoe on the other foot, I'm sure you wouldn't be warm on the idea of transferring the house to him with a charge in place. Who knows when he may sell - maybe 1 year, maybe 10 years, maybe never, who knows?

kkson said:

I really don’t want to lose the house, we have a young child. If we have to sell then I’ll have to suck it up but really hoping I can find some other way. 

My new mortgage will be JBSP with a parent so second charge not really an option but I have looked into.

This sounds like you are quite far off affordability if you're requiring a parent on the mortgage just to reach affordability for the current mortgage balance.

kkson said:

I have over 25k sitting on credit cards that I could access (all balances at 0), so I wondered if we could do the remortgage and transfer of equity then I could money transfer from my credit cards, bit by bit over a period of time so I could pay them down as I go and balance transfer at the end of my 0% etc. I think he’d be happy if he got something at least initially (just after completion) 

Would I need to involve a solicitor for that or declare it and pay further stamp duty etc? I’m trying to find a last way forward as I’m so close, before giving up and putting on the market but don’t want to do anything that isn’t technically allowed

Many would advise against this for a myriad of reasons however it would be useful to understand the numbers.

What is your income and what is your parents income?
What is the current mortgage balance?
What is the current living situation (e.g. are you currently still living together going halves on the mortgage)?
How much can you save a month?

Remembering that it could take 6 months (or more if there is a lack of interest) to recruit an estate agent, list the house, find a proceedable buyer then conveyance the house to you, then if you are able to squeeze together a bit more money (and have the mortgage balance decrease in the interim) you might be able to make this work.

I'd also remind the ex, that selling the house would see an estate agent wanting their cut (think 1% of the sale value) - which comes out of your equity.

Likewise, you need to be reasonable - you can't reasonably expect him to wait years, or agree to sign the house over to you without full payment, no charges or promises or agreements (think about if it was the other way round).