Question deleted for personal reasons

aliasojo

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homer_j_3

You are not trying to raise 55k you are wanting to raise an additional 21k, so would need borrow 76k. That assumes that you are giving them half of the remaining equity.

To borrow 76k, you would need to be earning probably 19k minimum per year.

Lenders will not take child benefit in to consideration but will consider things like Disability Living Allowance, working tax credits and child tax credits. They will also take maintenance (court ordered mainly)

You may want to explore what benefits you would get if you were on your own because they may increase and this may mean that you do not need the best paid job to reach the 19k a year mark?

I would also ensure that you put a realistic and modest valuation on the property as the property market is not bouyant and you don't want to over value it and do yourself out of anything

aliasojo

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beecher

Why would your OH get half of the value of the house when you still have a mortgage? You have equity (ie the paid part of your house) of £42k so he should just be getting half of that, ie £21k. Add that to the £65k mortgage and you get £76k.

homer_j_3

Your house is worth 110k

You jointly have a debt of 68k.

This means that you have equity of 42k

If you want to buy the other person out, you effectively are buying their half of the debt and giving them their half of the equity. So

You will need a mortgage of 68k for the remortgage and 21k for the equity to be paid, which means you need 89k sorry - not 76k. I was confusing myself there. This basically means your OH would expect to receive 21k at the valuation of 110k

Work on the basis of 4 x income will get you a mortgage (it has to be demonstrated as affordable). So 22-23k should be the required amount in this case.

Sorry for confusing you - I was doing 2 things at once and being a man, we are well known for not being able to do that.

MoneyTown

aliasojo wrote: »

Thanks for replying homer. I suspect this is obvious but I'm just not seeing it, lol........I don't understand where the £76k comes from?

We owe £68k just now so I would need to take that over and pay it off.....AND I would need to pay OH off (£55k ish).

The equity you and OH have in the house is its value minus mortgage debt = £110,000 - £68,0000 = £42,000.

Half of that is yours and half his. So he only has £21,000 to take away at the moment.

You would then have to finance the now £89,000 mortage (£68,000 + £21,000).

beecher

homer_j wrote: »

Your house is worth 110k

You will need a mortgage of 68k for the remortgage and 21k for the equity to be paid, which means you need 89k sorry - not 76k. I was confusing myself there. This basically means your OH would expect to receive 21k at the valuation of 110k
.

and then I copied your mistake to add to the confusion - sorry!

Giraffeseeker

But bear in mind that as a SAHM with a disabled child you would be entitled to AT LEAST 60% of the equity, possibly 70%.

aliasojo

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chappers

aliasojo wrote: »

Oh well ......onto plan B.

Whats that life insurance policy and anti freeze in the curry

aliasojo

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