A well respected, award winning social enterprise
Volunteer run - Government and charity funded
We help 50,000 people a year through divorce

01202 805020
Mon/Fri 9am-8pm       Sat/Sun 2pm-8pm
Call for FREE expert advice & service info

House / Mortgage Options

  • Tamwoods
  • Tamwoods's Avatar Topic Author
  • Fresh Boarder
  • Fresh Boarder
More
3 years 2 months ago #495451 by Tamwoods
House / Mortgage Options was created by Tamwoods
Hi,
Am hoping someone can help me here.
Myself and my wife have separated and have 2 children.
I have now moved out but want to know what options we have with regards to the house.
Due to the fact that she doesn't earn much, the title for the property is in both our names but the mortgage is in just mine.
She does not earn enough to be able to get the mortgage on her own but I still want her to be able to live in the house with the children and keep some normality for them.
Obviously I need to un tie our finances as soon as practically possible.
Can I take over the property in totality, pay her share of the equity and then rent the house back to her?
What would happen with any future equity? Would she then be entitled to any?
i assume the mortgage lender would not transfer the property into her name and she could use the child maintenance payments to pay this herself
Any help would be greatly appreciated.

Please Log in or Create an account to join the conversation.

  • WYSPECIAL
  • WYSPECIAL's Avatar
  • Moderator
  • Moderator
More
3 years 2 months ago #495457 by WYSPECIAL
Replied by WYSPECIAL on topic Re:House / Mortgage Options
You need to post more details about ages incomes, assets and children for someone to comment.

What is house like size wise?

Can she afford to pay the mortgage albeit in your name from her income?

Please Log in or Create an account to join the conversation.

  • Tamwoods
  • Tamwoods's Avatar Topic Author
  • Fresh Boarder
  • Fresh Boarder
More
3 years 2 months ago #495458 by Tamwoods
Replied by Tamwoods on topic Re:House / Mortgage Options
Thank you.

Kids are 13 and 10. No real assets other than the equity in the house which would be about £175k

She wouldn't be able to afford the mortgage based on her income alone but could from the maintenance and any benefit payments.

I could buy her out of the mortgage based on my income, but I would prefer them to stay on the house so as not to disrupt the children or her business (self employed from home).

Is this enough info for now, happy to answer and more questions for some more advice.

Thanks

Please Log in or Create an account to join the conversation.

  • WYSPECIAL
  • WYSPECIAL's Avatar
  • Moderator
  • Moderator
More
3 years 2 months ago #495461 by WYSPECIAL
Replied by WYSPECIAL on topic Re:House / Mortgage Options
You haven't mentioned incomes which is a huge factor to consider.

The most likely outcome from what you have said is that if the costs of running the house are affordable on her income from all sources she will get to stay there until such time as youngest is 18, she re-marries etc.

Mortgage will stay in your name with her giving best endeavours to release you from it. Until such time realistically you will have to rent.

At whatever trigger point occurs first she has to pay you the percentage that is agreed as your share either by raising the money or selling the house.

You say you could buy her out but don't say how much you could raise or what you think her share would be. Could you raise enough so that she can buy a suitable three bed house with her mortgage raising potential?

Please Log in or Create an account to join the conversation.

  • Tamwoods
  • Tamwoods's Avatar Topic Author
  • Fresh Boarder
  • Fresh Boarder
More
3 years 2 months ago #495471 by Tamwoods
Replied by Tamwoods on topic Re:House / Mortgage Options
Thanks

Not sure where my last post went, so try and remember it and type it again.

Her net profit each year is c.£11-12k
My gross income is roughly £100k

Hence the reason why the mortgage is in my name but the property in both our names.

If I bought her out I would then possibly still be able to get a mortgage on a smaller place somewhere else.

The house is an extended 3 bed semi worth approx £400k with about £225k mortgage outstanding on it.

Am I right in assuming that if I pay the mortgage, do I reduce the maintenance payments accordingly.

Would this also mean we would both maintain an equal share in the property until such time it is sold?

Thanks again for your help.

Please Log in or Create an account to join the conversation.

  • WYSPECIAL
  • WYSPECIAL's Avatar
  • Moderator
  • Moderator
More
3 years 2 months ago #495487 by WYSPECIAL
Replied by WYSPECIAL on topic Re:House / Mortgage Options
Given the disparity in incomes you are probably looking at paying SM as well as CM at least for a period while she seeks better paid employment.

If the house is the only asset and there are no pensions or anything else then it is highly unlikely that you will get anything close to a 50:50 split.

Is she currently looking for work to increase her income?

Please Log in or Create an account to join the conversation.

Moderators: wikivorce teamrubytuesdaydukeyhadenoughnowTetsSheziLinda SheridanForsetiMitchumWhiteRoseLostboy67WYSPECIALBubblegum11