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Divorce/separation

Here you'll find divorce help and support from other Mners. For legal advice, you may find Advice Now guides useful.

Original poster

I want to keep the house

22 replies

Aaaaaagh · 19/05/2024 06:11

Grateful for any/all advice. I've exhausted Google and getting overwhelmed with the information.

It's looking very likely that my husband and I will be splitting. No talk of divorce yet. We jointly own our home and I'd like to buy him out. In order to work out if that'd be possible, do I just subtract what's still owed on the mortgage from the valuation give him half of the equity? Is there anything else I'd need to pay?

In terms of actually taking sole ownership, would I have to apply to remortgage the full the full amount? If so, would universal Credit be taken into consideration as income?

I don't currently claim any benefits but would need to once we split. I work part time and have 2 young children. We're only 2 years into a 5 year Fix with 70% LTV and 25 years left on the mortgage.

Is there anything else I've not considered?

OP posts:
Walkden · 19/05/2024 06:31

If you're splitting and buying out houses surely a divorce must be on the horizon. Values of respective pensions,custody of kids etc, will all effect income and UC allowance. How long have you been married?

Original poster
Aaaaaagh · 19/05/2024 07:09

How would it work with claiming universal credit whilst still legally, financially connected? As I say, no talk of divorce at this stage but, we can no longer live together and, as things stand, neither of us can afford to rent somewhere else whilst still paying the mortgage on the family home.

I'm looking for the quickest and easiest route to him moving out basically.

OP posts:
Tukmgru · 19/05/2024 07:12

You’re not going to get a (re)mortgage whilst claiming universal credit. Nor should you be able to, frankly. Appreciate there are personal circumstances you haven’t gone into and I sympathise, but you’ll struggle to convince anyone that they should be paying your mortgage for you. Rent if in need, fine, of course, that’s why we pay tax, but not a mortgage.

onefinalhurdle · 19/05/2024 07:16

You won't get UC towards housing - no bank in the land will give you a mortgage working part time on a seemingly low salary

Overthebow · 19/05/2024 07:18

Do you have any savings? There’s a limit to have much you can have in savings on UC. Do you know if the banks would lend you enough to take on the mortgage yourself? What’s your income?

Meadowfinch · 19/05/2024 07:23

Can you work full time and increase your income?

I doubt any bank will lend to you, based on UC.

Imustgoforarun · 19/05/2024 07:24

To get a mortgage you will probably need to work full time.

yes, deduct the mortgage off the estimated value of the house. So house is “worth” £300k but your have a mortgage of £250k means you have equity of £50k. If you share that equity you are going to get £25k. You would then need to re mortgage for £275k to buy it off him. I have a good salary there is no way anyone would lend me £275k. The deposit of £25k will stop you getting any UC and rightly so. Anyone who can afford to buy a house should not be receiving UC.

keepingsanity · 19/05/2024 07:27

You can still claim UC when separated. If you do want to keep the house then I would look to go full time now and prove a solid income over a period of time to the mortgage company.

I don't think UC will be taken into account for when you apply for a mortgage. I had to show 3 x months of maintenance payments going into my bank when applying for my mortgage, but I was working full time too.

There are a lot of variables here though as a divorce doesn't necessarily mean a 50:50 split of assets. For example I got his equity in the house and he kept his pension and another property we own.

Speak to a solicitor. I hope it all goes well for you

PiggieWig · 19/05/2024 07:33

There are a lot of variables here, as others have said but you won’t get the housing element of UC for a mortgage. It’s a question of whether your income is enough to cover a mortgage on the outstanding amount. Unless your mortgage is small or your salary huge it seems a lot to manage on a PT wage I’m afraid.

keepingsanity · 19/05/2024 07:35

Quickest and easiest route would be for you to go full time and pay the mortgage.

He is then freed up to rent AND pay you maintenance. Therefore you have income to run the house and pay the mortgage.

This worked for me as I had the capacity and earning power to do this. It worked out cheaper than me moving and renting myself. My ex had very good earnings though.

We still have an extraordinary good co-parenting relationship though and both trust each other. This may not be the case with you.

At the end of the day though it's still his asset too.

From the basic info you provided I think you need to sell up and get a full time role.

Original poster
Aaaaaagh · 19/05/2024 07:50

Thanks for all of the advice. Unfortunately full-time employment isn't an option as both my DC are pre-school age so I couldn't afford nursery fees for both.
I appreciate it's his asset too, hence me enquiring about if it would be possible to buy him out. I'm not looking for tax payers to pay my mortgage, as I've said, I work and my salary would cover the mortgage payments but my income wouldn't meet the affordability criteria for remortgaging alone. According to a Google search, some lenders do take UC into account. I intend to get professional advice.

OP posts:
NewLifter · 19/05/2024 08:00

You need to look at tax free childcare. It sounds like you're on a good salary if you're saying you can take on a large mortgage yourself, whilst working PT. So increasing to FT is likely to be the answer here. Don't forget DH will have to have access to the DC too so can pay the childcare on his days.

PiggieWig · 19/05/2024 08:10

UC will help towards your childcare costs, or if you earn over the threshold for support you can get tax relief on your payments.

bellalou1234 · 19/05/2024 08:24

Following my ex is buying me out

daffodilandtulip · 19/05/2024 08:27

We got an order that said to avoid extra fees, once the current fixed term ends, I would get a mortgage in my name. Could you be off UC in three years and have a similar arrangement? (Incidentally, I could prove I had always paid it and didn't have to give him any money either.)

Original poster
Aaaaaagh · 19/05/2024 08:55

daffodilandtulip · 19/05/2024 08:27

We got an order that said to avoid extra fees, once the current fixed term ends, I would get a mortgage in my name. Could you be off UC in three years and have a similar arrangement? (Incidentally, I could prove I had always paid it and didn't have to give him any money either.)

This could work! In 3 years time both DC will have started school so I will be able to up my hours and increase my earning potential.

OP posts:
daffodilandtulip · 19/05/2024 09:11

Whilst negotiations start at 50:50, in a way there are no set rules, as long as you can agree between yourselves and show a judge how it’s fair, you don’t have to do it a certain way.

mitogoshi · 19/05/2024 09:22

Whilst there's a knee jerk reaction to keeping your house, think about the practicalities. Firstly can you comfortably afford to pay the mortgage in full including the extra equity you need to pay him? Secondly can you raise that full mortgage in your own name, yes there's places that will include uc and child maintenance but you'll need a specialist broker. Thirdly remember that uc doesn't help with mortgages but does help with rent. And finally, do you really want to stay in that home?

One option several friends have done is take their equity and get a shared ownership place, no mortgage and they used the equity and rent the remainder which you can get help with uc.

Emsy999 · 19/05/2024 09:46

Hi,

I'm in a similar situation, although it's my ex that's trying to buy me out (but he's been very difficult in the process).

His family are lending him the money to buy me out and pay off the existing mortgage so it's slightly different as my ex won't need a mortgage.

I moved out of the family home as it was such a toxic environment for myself and our two sons. Because of my ex's behaviour recently I have looked into the possibility of being able to buy him out instead. I work part time also and claim UC and pay rent elsewhere. I have spoken to our mortgage provider and they've said that if I am staying with them on the same mortgage deal and just transferring it into my name then I can use my salary plus my universal credit to prove I can afford the monthly payments. There is a benefits calculator that you can use to see what you would be entitled to and I think there is a loan amount each month that can assist you but I think you have to pay it back when you sell the property.

I would speak to your mortgage provider and see what they say.

Good luck!

ByUmberViewer · 19/05/2024 11:39

You need cold hard facts. Not anecdotes from Mumsnet.

Go and see 2 or 3 mortgage brokers next week and see how much someone is prepared to lend you.

You can't really future plan without this key bit of information

LemonTT · 19/05/2024 11:48

UC can support a mortgage application but some lenders don’t see it as reliable income. Government policy can change.

You can’t claim UC whilst being dependent on his income. It will form part of your means test. The exception is child support which isn’t means tested but you don’t have a basis for assuming this will be applicable when you separate.

You don’t have any rights to force him out of the house until or unless you buy him out.

many many things about the separation and divorce depend on him. The more you can agree on the better. Getting high handed and demanding the more likely he will be to counter what could be perfectly reasonable asks.

onefinalhurdle · 19/05/2024 20:20

I have 2 pre schoolers in full time childcare (twins) and also work full time. It is possible financially took a bit of planning though

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