Buying my long term partner's share of house and mortgage

Gazo53

I would like to buy my partner's share of the house.  How do I go about it? As an example the house is worth £360K with £60k left on the mortgage.  The mortgage and ownership is split 50/50.  We are not married.  My new partner and I would like buy my partner's share outright less £30k my partner owes on the outstanding mortgage.

sheramber

It is rather confusing that you have two partners. 

Does the reference to ‘partner who owns 50% of house’ mean ex partner?

Woodstok2000

If you and your current partner want to buy out your ex partner, based on a purely 50/50 split you would need to pay them £150k (value minus mortgage multiplied by percentage split).

El_Torro

So yeah, give your (presumably ex-) partner £150k and that still leaves you with a mortgage of £60k. Assuming you don't have £150k lying around you could get a mortgage worth £210k. Depending on your age a Loan to Value of 58.33% is enough of a deposit to give you a good interest rate.

Stateofart

The house worth is £300k and he's entitled to half that. You get a mortgage for the remaining £60k yourself. New partner gets a mortgage for £150. OR, the total £210k is split between you and your new partner. You old partner is not liaible for any of the £60k now he's gone.

silvercar

The mortgage lender would need to be satisfied that you and new partner can afford the mortgage. If your new partner has funds they could pay £150k to the ex-partner to buy their half of the equity and take on joint liability for the mortgage. Argue between yourselves who pays the legal costs of this.

If the new partner has a lot of cash to spare, they could clear the mortgage and give the ex £150k. Or they could help you reduce your mortgage to £30k for which you take sole responsibility. Though with new partner's name on the deeds, they would need to be jointly liable for the mortgage.

If new partner doesn't have the cash to spare, you and they could take a larger mortgage to pay off the ex-partner, assuming you have the necessary income between you. Tread carefully - you don't want another break up and be left with a mortgage you can't afford.