What are my chances of buying him out?

trinab75

Myself and my partner own our home as tenants in common, as I sold my sole owned property to enable funding of a £40.000 deposit on the joint house.
The value of the house is £132.500, the Mortgage is-£95.000
Deed of trust and deeds as tenants in common state if the house is sold I receive £25.000 of my deposit back and then half the equity. which equates to £32.000 in my favour.

I would like to transfer the house into my sole name,rather than having to sell and uproot my children,does anyone know how easy this is to do? bearing in mind I have already secured payment of a good chunk of the house value and I can offer my partner a payout out of my savings so no need to remortgage. Is the mortgage provider likely to take my new circumstance into consideration. Or will we have to sell the house?

I have a part time wage and will receive tax credits/child benefit and maintenance payments leaving me with approx £600 per month to live on when all the bills are payed.

Advice form anyone who has been in such a circumstance much appreciated, thanks.

silvercar

If your income can justify the size of mortgage you require then the lender should agree.

From your calculations you would need to give your partner just over 6k; if you have more savings you may need to use some to reduce the mortgage.

You may also want to consider whether a sale would achieve the valuation and who would bear the costs of the sale.

rdsmortgageman

Halifax are quite good at taking various benefits and tax credits into account. If the total income meets criteria and is affordable, you should be ok. Again, if affordable, a self cert lender would probably lend, but I would recommend trying the standard route first.

Conrad

Rds - I would not persoanly justify a self cert application on nthe fact clients income is part funded by state benefits - you'd be asking for trouble. Lenders have always held the view that relying on benefits for part of your income is unwise as such benefits can be removed for all sorts of reasons, thus it does not pass the RESPONSIBLE LENDING TEST.

Affordability by itself is not enought to recommend a mortgage is suitable.

Eve if a lender does agree, as the FS point out, this does not mean the advice to proceed is justified.

rdsmortgageman

Conrad, you will see from my post that I am suggesting that they try a standard lender first, such as Halifax who will take a proportion of benefits. There are also self certification lenders who accept certain benefits and will take 100% into account.

I am not providing advice here.

trinab75

Thankyou all for your useful responses.

I have just input my financial details using the Halifax Online Calculator and it appears I can raise the mortgage I need with them, as it does indeed take regular benefits into consideration (which is only a temporary measure until the children are slightly older, at which point I can up my current hours).
Also I am due a significant payrise next year, so I am quite certain my decision to apply for a lone mortgage is a responsible one and there will be no negative financial implications for me or my children.

The Halifax seem to be my first point of call, so I shall contact them shortly-Thanks ever so much for the suggestion RDS.

Conrad

RDS - I think your Halifax suggestion is a good one, although they may want to iron out all the detials and be satisfied the mainenance is under court order.

I just wanted to point out that were she to end up going self cert, it can be problematic from a TCF / compliance angle where the main justification is the income is partly from benefits. Thats not necessarily my opinion, but would be a regulators opinion.