I was after some advice please as I have been speaking to my stbx towards agreeing something rather than going to the court. Going back and forth a few times, now she proposes below as below:
We have 3 properties between us...
1 - Family home - Equity of £167K - We agree she will continue living there with our two kids.
2 - BTL - Equity of £200K - I intend to move in there
3 - Second home, well a flat, I purchased when I moved out from the family home. Currently for sale, worth £70K
She proposes that I pay her 60% of total equity £437K from the above 3 properties which is £262200. So that minus the current equity of the family home as she will live there and will be getting it, £262200 - £167000 = £95200.
So I pay her £95200 that she then uses to repay the existing mortgage on the family home with current outstanding mortgage of £292000 so that it comes down and monthly mortgage amount is more manageable for her by herself. As she doesn't have a big mortgage raising capacity, she is asking me to be a guarantor for her on the mortgage.
Let's say I agree to that, can we then go ahead and do the property transfers? i.e. I transfer the family home to her name and be a guarantor on the mortgage in case she can't keep up the mortgage payments. She transfers the buy to let to my name so that I solely own that. Is that possible? Appreciate if someone experienced and knowledgeable can shed some light.
Are you staying named on the mortgage on the FMH or just becoming a guarantor? Will the lender agree this? How long will it be for? Will you still be happy to be liable for paying her mortgage if a new partner moves in at some stage in the future?
Her income is £26K so she is not going to be able to afford it from the lender's perspective, so she is asking me to be a guarantor. I have to decide on it if I am willing to trust her and take that risk I understand. What I am wondering though is that...let's say I trust her and ready to be a guarantor, is it then possible that I can transfer the property completely to her name and just be a guarantor on the mortgage. My income is £60K. In return she can transfer the BTL property to my name completely, that is the idea.
Are you staying named on the mortgage on the FMH or just becoming a guarantor?
This is what she is proposing, just be guarantor.
Will the lender agree this?
I need views and opinions from wikivorce folks who might know from their experience for answer to this question.
How long will it be for?
To the point mortgage amount comes down and then lender agrees to have her liable by herself.
Will you still be happy to be liable for paying her mortgage if a new partner moves in at some stage in the future?
No, I will probably try and include this scenario so that I can come off from guarantor.