Buy out husband but keep him on mortgage?

[ElRopo]

I’m looking for some advice as to whether this is a total non-starter or whether it might be considered legally.

My husband and I want to separate (one child under 5) but, unfortunately, have just remortgaged with a five year fixed deal (our heads were in the sand about splitting up but it’s now becoming untenable). I’ve spoken with a mortgage advisor and, even though I earn a very decent salary, there is no way that I’ll be able to get a mortgage in my sole name (although this should have changed in 5 years time) but I absolutely can afford to pay the mortgage repayments on my own.

My husband needs money to find a new place to live and it’s fair that he should have that. He does not want to buy a place and will rent. We have about 40k equity in the house.

Taking this into consideration, would it be possible for us to take a snap shot of our finances at this point in time (40k equity) and for me to pay him his share which equates to 20k (my parents are generously giving me this), but for him to remain on the mortgage for the next five years although he won’t be contributing to it in any way. We wondered whether there could be a legal agreement drawn up that would state that after I give him his share of the current equity that, although he will remain named no the mortgage for the next 5 years, I will be responsible for the repayments and that he would have no further claim on the equity. In five years time I would be able to remortgage in my sole name.

Is this a completely ridiculous suggestion or could it work? (I’m in Scotland if it makes a difference)

Any advice greatly appreciated!

Asd BB says in England he could stay on the deeds and mortgage but your solicitor draws up a trust document saying he holds that share 100% of you.

In England everythign can be undone when the finances of a divorce are looked at by the court however so it is much better if whateve ryiou agree is drawn up (by a solicitor) in an agreement between the two of you - a consent order - which is then sealed by the court.Then it cannot be undone or altered if eg one of you inherits £10m or one wins th elottery after separate but before the court decides the finances. Scotland may be different. You need to speak to a Scottish solicitor.

In England another issue is if you want a clean break now with no spousal maintenance claims after you separate or if there will be spousal maintenance which if there is even if just £1 could be increased in due course.

The main risks if you do not have a court approved financial full settlement in England at least are (i) he takes the £20k and then comes after a lot more later (ii) he claims a rise in the house value eg if it doubles in price in the next 4 years who keeps that increase?

I'd be interested to know how you get on, OP.

I'm also in Scotland and in a very similar situation.

I do remember my mortgage advisor saying something about LBTT/ASD taxation if I bought him out, which put me off too.

She called the mortgage company to ask her options and was told if she paid by herself for say 6 months and had proof that she had done it alone then he could be removed from the mortgage and it could be in her name

This very much depends on your lender. I will have paid the mortgage alone for much longer than six months but Nat West don’t allow this, if you don’t meet their affordability criteria you can’t have the mortgage.