Splitting up - mess!

rach83

Hello

I have been with my partner for nearly 4 years and 2 and a half years ago we brought a property together. We are going to split but I have done some homework and discovered that after fees (with hindsight I made a stupid move by fixing our mortgage for 5 years) it will cost us the best part of £7,000 to sell :eek: what with redemptions, estate agents fees, solicitors. What we will end up walking away with will be peanuts. If I was to buy him out and take on the mortgage he would save on redemptions, estate agents fees (there might be fees involved with transfer of deeds etc but I would imagine that would be quite minimal in comparison to £7,000! Don't mean to sound dumb but surely a buy out figure could only be what profit we would ever expect to make if we sold and had to pay all the fees. If someone can clarify that for me I would be grateful. Thanks

YorkshireBoy

I don't want to add to your woes, but isn't stamp duty payable (depending on property value of course) with a change of ownership as well?

Also, as you have seen, it's definately going to benefit both of you if you can avoid solicitors and a messy separation. Maybe use a free mediation service perhaps?

Good luck with whatever you do.

rach83

Umm the property is under £120,000 so I guess that wouldn't come into it??

zzzLazyDaisy

The 'buy out' figure is whatever you can agree with him. If you can't agree, then the place will have to be sold, and you will both lose out.

You would, of course, have to arrange a mortgage in your sole name, possibly with a bit extra to cover the costs of buying him out? So you would need to check with the lender if it would be willing to simply transfer the mortgage to you, or whether it would count it as a remortgage (in which case, would the redemption penalities still apply?)

There would also be solicitor's fees and land registry fees. The lender may also insist on new searches and a survey, so you would need to check that out too.

But you would avoid estate agents fees, and, from your partner's point of view, it would mean he would be released early from the mortgage repayments, whereas if you decide to sell, it could be on the market for a long time, given the current state of the housing market, during which time, the mortgage still has to be paid.

Good luck

Daisy

rach83

Hello

Thanks for your reply.

I am thinking of a settlement figure which I deem to be fair and then maybe borrowing some money from my parents to actually pay him and then reduce the mortgage down a bit. So from the lenders point of view the mortgage would be less than as it stands now. I am fixed for 5 years so if it was as simple as removing him from the mortgage and the deeds could I just hang on to the current mortgage? My mortgage is with the Nationwide so I am not sure how easy it would be too do.

Thanks

YorkshireBoy

rach83 wrote:

My mortgage is with the Nationwide so I am not sure how easy it would be too do.

Give them a ring now. It might be good news!

rach83

Will do thank you for your support!

dwsjarcmcd

Rach, I have been in your situation. You have covered off the options if you want to stay in the house. If you want to move (or for that matter he wants to) you can port part or all of the loan to your new property. That way you will avoid ERC's or at worse, reduce them. Try getting him to take the Nationwide product, leaving you to arrange a mortgage elsewhere!