Buying him out of a mortgage on low income

[LegoCity2024]

Hi everyone, just need some financial advice.
I filed for divorce yesterday, but my husband is still here in the family home until we release the equity from the house.

He has been the main breadwinner for years until I went back to work about 5 years ago, only part time so I can be around for the kids.

We decided that it's best for me to stay here and buy him out of the mortgage (he knew full well that I can't afford it but he wants his portion of the equity).

I spoke to the mortgage people and they did an affordability check. I passed the checks but this is dependent on me claiming universal credit, as they will take that into consideration. However, they won't do anything until I provide evidence of the Universal Credit claim (I only did an online calculation).

But can I claim universal credit as a single person while he is still here? Has anyone done that? If so, any advice? Thank you.

I'm not a financial advisor, but this would seem to put the onus on him to move out first, so you can get the ball rolling, I'm sure someone will have better advice shortly but that's what struck me. You've done your but, ball's in his court. Good luck!

Yes I thought the same, but I'm not dealing with a reasonable human!😆

Yes you can claim UC whilst living in the same house but you'll probably need to provide some kind of proof you're not still in a relationship. Get some specialist advice from somewhere like Citizens Advice on how to do that

Who's paying the bills at the moment? And are you separated but living together? As in, is he doing his own shopping/cooking/cleaning?

Cleaning? He doesn’t know the meaning of the word.

I think this is what we’re going to have to do - separate everything. At the moment the bills are all in a joint account but I’m slowly moving them over to my name and my account.

But what gets me is that if I’m paying for everything while he’s still living here on his massive salary not paying any bills - how does that work?

I’m going to call CAB on Monday I think. Thank you

You need a lawyer, to determine what equity he gets. It’s unlikely 50:50 is fair here.

Record every bill you pay and make sure you get that back in your financial settlement.

Same with pensions, savings and investments, they need to recognise a fair (which may not be equal) split.

I don't understand how the mortgage company can say that before you are even claiming UC. Are they just basing it on an estimated amount from a benefit calculator or something ? Also be aware that depending on the ages of your kids UC may ask you to look for more hors of work, it does depend whether you meet the earnings threshold. They ( the mortgage lender) may also be able to take child maintenance payments into consideration.

Well I think you need to force his hand. If he wants his money from the property he has to move out pronto to enable you to get the ball rolling

I'm sure he can afford it on his massive salary

What is his massive salary?

how can you buy him out without knowing what % you should be buying ?

You can claim UC as a single person - I am currently doing this. XP makes no financial contribution to the house. UC were very good and havent demanded proof of anything.