Buying me out of mortgage. How?!

[MarshmallowsOnToast]

Hi All, was just looking for a little guidance please, if possible?

I know roughly what needs to happen but unsure what order to go about things..

My partner and I have decided to split. We own a house with a mortgage. I will leave the house with child and go into private rental, my partner would like to stay in the house and buy me out. All good there, both happy with the plan.

Basic facts are as follows:

• My partner & I are not married
• We are Joint Tenants
• Each put down equal deposits
• Since taking out the mortgage, we have paid fairly equal amounts towards the house each month (Partner paid mortgage, I paid the equivalent in bills)
• We have agreed to split house equity 50/50

So in theory all pretty straight forward. But what do I need to do first? Feeling a bit overwhelmed.

Any help very much appreciated.
Thank you!

Two things.
Who owns the house.
Who is on the mortgage.
You need a lawyer.

If the child is both of yours you may get a 60/40 split in your favour as you have main custody and need to be able to provide for your child

I'd go and see a solicitor

Your partner will need to apply for a new mortgage in their sole name and the property will need to be transferred from both of you into their sole name at the same time as the mortgage completes. You then get your cash equal to your share of the equity less half the costs and you get the joint mortgage paid off.

Putting aside the costs for your shared (if I've read it correctly) child, the property side is:

Value the house. Doesn't have to be particularly formal if you agree things but you'd each need to know you thought the value you work on is about right.

So....

Assume the house is valued at £200k.
Assume your outstanding mortgage and redemption fee is £120k.

...... that gives equity of £80k.

You need to agree between you what percentage of that you're each entitled to. For ease of numbers for the example, assume it's 50/50.

On that basis you'd be paid out £40k.
Your partner would have to get a mortgage for the £120 you're paying back to the mortgage company plus the amount he has to pay you (unless he has some cash lying around to put towards it.

The legal side is reasonably straightforward: you'd probably want to get a lawyer involved just for the undertakings about you signing the transfer in return for the promise of the money but it shouldn't cost that much.

BUT all of that is separate from the whole issue of how your partner will pay towards your joint child. You should take legal advice from a family lawyer so you know what you're looking at before you finalise things on the house.

Thanks all. This gives me something to go on!

Off I go to research more.

Sorry - just to answer. It is our shared son, yes.

I just presumed I would get child maintenance in contribution to his upbringing.

Our son is 2 and in nursery. Ex currently pays me about half towards this.

We got three valuations and settled in the middle - I was the one doing the buying so actually got a new mortgage, he was paid much as a new purchaser would pay for any house sale. It's a very long time ago and we had no dependents so details are now a bit hazy. I think it must have been sorted through solicitors!! Can't believe I don't remember!