Remortgaging to take equity out to stay in family home

[bringonyourwreckingball]

Stbxh is proposing an arrangement whereby I remortgage the family home to take out a small amount of equity (about 50k out of 400k total) so that he can buy somewhere else and I can stay in the family home for a period of around 4 years to keep the kids settled whilst they finish school. He will pay a fairly significant amount of financial support to enable this. We would then sell and divide the remaining equity accordingly. Has anyone done this or explored it and decided against it? I have major concerns about it but it would probably be the better option for the children to stay put rather than move as I can’t afford to buy on my own close to school and their friends.
I’d just like to hear if anyone has any experience before I explore further with the lawyers.

Sounds reasonable if you cant afford to buy him out completely when you remortgage, ie give him £200K. If you can afford to remortgage in your name for the required amount, I would take this deal without delay.

What are your concerns? On the face of it, it seems to benefit you much more than him?

The question comes fine to

can you afford the mortgage
are you approved for the mortgage ie will lender lend you the full mortgage needed

its basically a mesher order where his share is deferred but he needs a partial amount now to allow him to rehouse ( on face of it sounds reasonable)

you need also to agree on overall share/ split which might or not be 50:50

what are your major concerns ?

I'm trying to do this. I've got an agreement from the building society that I can borrow enough to take over the mortgage and give him around £25k which my solicitor suggests is a fair figure. I can't get my head around anything financial, and am not sure if this is the best thing to do or not. All I want is to keep the kids in their own home with me, but as it's me instigating the split, I'm worried I might be forced out. Solicitor says I wouldn't be, but I can't help feeling it would be unfair of me to force him out..... This is all really hard. Sorry that's no help at all @bringonyourwreckingball

I’d want all of that legally bound abd I’d want to know who was covering the mortgage in the event of a job loss or death.

I’d want to know who was covering the mortgage in the event of .... death.

That's what life insurance is for. Anyone with dependent children should have some.

Yeah, it seems okay. Obviously you're not just going to do it without speaking to a financial advisor first though right?

Amounts of financial support he intends to provide are the sticking point. Any maintenance agreement made in court is only valid for 12 months.
If this is in your name only it could leave you high and dry.
Will you pass an affordability check on your own? Mortgage companies tend not to take CM into account. They do take spousal but if you get spousal it counts as income if you are claiming benefits.
For four years why can't he rent? Could you both remortgage and switch to interest only for breathing space?

Depends on the age of the parties wouldn't it? 4 years is nothing if you're still in your thirties, you can still get a 25 year mortgage at about age 42 these days. It's a big deal though if you are already in your 50s. If he was 52 it could reduce the time he had to pay off a mortgage by 25%.