Remortgaging to buy out ex-wife...

fizzgig_2

Hi folks,

My ex-wife and I are trying to work out a way of me buying her out of the house we purchased together with a joint mortgage 4 years ago.

The house is currently worth about £320k and the existing mortgage stands at £206k. My ex just wants £40k as she didn't pay as much into the property when we were together. I would probably be able to get a remortgage in my own name for the £206k outstanding based on my current salary but it would be highly unlikely that any lender would give me £246k on my own.

If we were to remortgage together again (which my ex-wife is willing to do) do lenders ask what we want the additional amount for? Would I need to lie and say we wanted it for home improvements or something or could I be honest and say what it is for? I don't know how they view situations like this.

Any advice much appreciated.

inca_2

I'd be wary of that if I were you and seek legal advice as if she stays on the mortgage and the property is still in her name as well as yours and things turn sour at a later date there isn't anything to stop her from wanting more equity at a later date if you decide to sell or put it in your own name. Have you considered her having a charge on the property so that if you sell in the future she will have the money then or is it that you have to let her have the money now in order for her to move on.

Also, is your ex planning on taking another mortgage or will she be renting, if she is wanting another mortgage her being on this mortgage would more than likely make it harder for her to do so.

chuckychucks

Hi

I was in a situation like this in the past.

I bought my ex partner out of our mortgage, if you apply for extra funds on your mortgage you can just say it is for home improvements..they don't check what you use the money for.

But why would you want to re-mortgage with your ex?

Sure you are still friends now she goes away with her 40k but is her name still on the mortgage? if so she is legally entitled to come back in years to come and still have a claim on the property.

My solicitor told me that i had to be represented by him and my ex partner had to have her own solicitor to legally advize her...the contract was drawn up for the amount she requested and passed between each solicitor...this way there was no come back.

Just some food for thought

fizzgig_2

Thanks for the speedy replies.

The ex-wife needs the £40k sooner rather than later to pay off some debts of her own. She is living with another bloke who has his own mortgage so she doesn't need to get one of her own. We're going to get a consent order made up with our solicitors which will cut all financial ties and prevent her from having any further entitlement to the house.

I'll need to make sure that she is happy to tie her name to the mortgage.

Gorgeous_George

Consider marketing the house. Only by doing this can you determine the market value of the house and therefore, how much, if anything, you should give to your ex-wife.

By all means keep it amicable (on the outside at least) but keep your head and do not rush into handing her anything. Find out what the house could realistically sell for in the current market. Better still, sell up and then give her whatever you think is fair and reasonable from the proceeds after all costs have been taken out. Then, buy a new home by yourself.

Good luck and best wishes.

GG

happybroker

you say it's unlikely the lender will give you the full amount...have you asked them?

speak to a decent broker about it as lenders have different criteria re affordability but lying to a lender is not good. Apart form being fraud you could make things impossible for the future if you get found out.

Incisor

Gorgeous_George wrote: »

Consider marketing the house. Only by doing this can you determine the market value of the house and therefore, how much, if anything, you should give to your ex-wife.

The OP and his ex seem happy with the £40k. If the OP follows your advice and cuts the offer, the ex might demand more.

If the 2 of them agree the settlement, then I think that the advice here should be [as the OP requested] to find means of financing it.

CLAPTON

complete madness:

you give her 40K and she retains 50% of the house value
and you pay the complete mortgage

why did you separate?

Gorgeous_George

Incisor wrote: »

The OP and his ex seem happy with the £40k. If the OP follows your advice and cuts the offer, the ex might demand more.

If the 2 of them agree the settlement, then I think that the advice here should be [as the OP requested] to find means of financing it.

At best there is £104K equity in the property. we all know prices are dropping like stones. If I was the other party and allowed to walk away with £40K I'd be giggling all the way to the bank. It is simply far too generous.

Splitting from a serios relationship is a stressful time and you cannot trust yourself to think rationally. Besides, this is a money saving site. Offer £25K (max) in full and final settlement.

GG

poppy10_2

CLAPTON wrote: »

complete madness:

you give her 40K and she retains 50% of the house value
and you pay the complete mortgage

Yes, this sounds ludicrous to me, sorry.