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Buying ex out - secured loan. Has anyone done this?

(12 Posts)
Fantasisa Thu 30-Jul-20 18:52:31

I can't afford to buy 'D'H out and take on the mortgage and he won't leave unless he gets his equity. I could possibly take on the mortgage if I can prove to the bank that I can make the repayments without his assistance but they won't let me remortgage to buy him out..

My latest idea to raise the equity is to show the bank I can make the payments (I can), take on the mortgage and then get out a secured loan on the house to pay him the equity. It would be tight financially but I can't see how else I can do it.

Has anyone else done this? I know it should be a last resort, and it is, but if it sorted the finances I'd be prepared to do it.

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confused3485 Fri 31-Jul-20 09:08:18

Im hoping to do exactly the same so would be good to know if its worked for anyone else x

Lockdownseperation Fri 31-Jul-20 09:12:48

You won’t be able to get a secure loan against the house unless your ex agrees.

If he your husband? Do you have children together?

unluckyducky Fri 31-Jul-20 09:17:56

My exH signed over the house with a draft consent order stating I will pay him the buy out upon our child's 18th birthday or in the event I sell...whichever first.

He needed to be released from the mortgage early to move out of his parents' house so I was lucky to have some leverage to speed things up.

The alternative explained to me was to have a charge put on the mortgage which would work in a similar way.

Fantasisa Fri 31-Jul-20 10:53:24

The aim would be to show the bank I could afford the mortgage repayments by myself (I can but they won't approve me without 3-4 months apparently), take ownership of the house and then take out a secured loan on the property to pay DH back. Obviously he would have to trust that I would do this.

We are married and we do have DC together. We about the same and will share the DC 50/50 so it isn't the case that one of us has more right to be in the house than the other.

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Fantasisa Fri 31-Jul-20 10:53:47

We earn about the same it is meant to say

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unluckyducky Fri 31-Jul-20 12:17:02

Yes you'd be relying on him accepting that so that depends how amicable the situation is. If you're getting a divorce his solicitor will advise him strongly against doing that and will push for the charge on the mortgage instead.

If you are staying in the marital home that would form the childrens' primary residence then you can reduce your buy out to 40% and this would then also be subject to him having reasonable deductions for a theoretical sale

Fantasisa Fri 31-Jul-20 12:27:20

A charge on the mortgage would be better for me as I wouldn't have to pay it now. But he will need his equity to be able to start his new life.

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unluckyducky Fri 31-Jul-20 12:31:40

It's going to depend on how much that equity would come out as when all is said and done. It's the most difficult part of a divorce and my financial separation has taken over a year. You may find you will have to sell the house if he is not willing to accept the charge, because I can't imagine you would be accepted for a large loan soon after taking on a sole mortgage 😔

Fantasisa Fri 31-Jul-20 12:40:04

It would be an £80k loan so not insubstantial. sad

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unluckyducky Fri 31-Jul-20 12:47:32

I think you need to see a solicitor and talk things through, I don't think your original plan sounds feasible personally, sorry

Louise000000 Wed 12-Aug-20 20:31:27

I'm wondering exactly the same. Ex wants £30k so planning on doing a £15k loan now and then hopefully he can wait a few more years for the rest.
@unluckyducky that sounds interesting so I could go ahead and apply for him to be taken off my mortgage and he would then agree about when he will get his equity? Is this done through the mortgage lender?

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