Buying husband out of house?

[WonkyPicture]

Husband and I have split up. I'd like to buy him out of our house, can anyone tell me how they've done this?

The house is worth roughly £185k, there's a £35k mortgage on it. So I reckon I'd need a mortgage of £100k, £35 to pay off mortgage and £75k to pay off husband. I put a bigger deposit into the house when we bought it, that was before we married, can I take that %age off what I give him?

I have more than £100k in my pension, which would cover an interest only mortgage, is that an idea?

How old are you? As you will only be able to take the money out of your pension when you hit usually 60/67 (in some cases earlier due to poor health but it’ll be in the legal docs)

You need legal advice, OP.

Is your husband open to be being bought out?

Do you work, and would the figures work for you to take out a £100k mortgage, for example 4 x salary means you need to earn £25k per annum.

35+75=110

Do you have children? A solicitor might be able to get you slightly.higher than half of you have children and they will spend more than 50 percent of time with you.

I agree with the above poster usually you can’t pull out of pension until a set age. The only one I know that is age 55 is a SIPP and it’s moving to age 57 soon. The 100k you can only take 25 percent tax free. The other 75k is tax deductable. I would be careful with an interest only mortgage as you’re only effectively renting. Ideally I would try see how much a repayment costs you first. Yep if you have paid more deposit definitely try and use this to reduce the amount you pay ex husband.

For interest only mortgage, I don't need to pull anything out if my pension, I simply need to prove I can pay the loan back in the future, in the interim I just pay interest.

Yep, typo £110k.

Husband is happy to be bought out.

I have dc, but they're 21 and 17.

Ah right I get you now! I would get the mortgage broker to give you both lots of figures for repayment and interest only. Just thinking longer term you will be able to keep more of your pension. Get them to give you all scenarios eg longer term etc. get an estate agent as well to value property too so you pay a reasonable figure for it too. Myself personally I always think better to overpay now as you will pay less interest as the amount your borrowing goes down. Understand it comes down to what you can afford too hard supporting house on one salary.

I think that’s unlikely. What will you live off in old age if you use all your pension money on the mortgage?

Depends on whether you can agree this amicably between you. I'd say the lump sum for the deposit would be fair enough for you both to get out what you put in and split the rest of the equity 50/50. But are you both going to walk away with a what's yours is yours attitude towards pensions and other assets or investments? You should probably speak to a solicitor.

I did the above once by the way, but we were both still in our 20's. It was also at a time when you could get a self certified mortgage! We agreed not to delve into each others other assets / inheritance. If you've raised children with your DH you may be entitled to more..

If you can agree the above maybe a mortgage broker would be able to help you find a suitable mortgage. But if you use your pension to pay it off at the end what will you live on?

Well I'd down size and use part of the money if the sale.

Downsizing from a 185k house won’t leave you much to live off though.

I'm in a 4 bed detached house, but I'm in the NE. I can get something decent for £100k here.

I also have a sizeable inheritance coming. Obviously I'm not looking to just expect that or rely on it, but I'm not currently expecting that to change.

Plus whether I downsize now or in a few years, I'll still have to face the same issue of buying for £100k. I currently gave 2 dc living with me, so can't downsize yet.

Do you have any income?
Did you get anything drawn up with a solicitor that formalised your higher deposit?

If you have some income you don't need to pay off the £35k mortgage, you just need to be able to pay off the mortgage right now.

Assuming a 50-50 split you'd need to afford to pay your husband
(£185k-£35k)/2 = £75k
Plus fees (which I'd assume you'd split 50-50

Are you getting valuations?

Are you absolutely sure he isn't going to go after half your pension? He is entitled to it, as you are to his.

With a child under 18, I would advise a solicitor, as they may well get a better split for you than 50/50.

Your DH will be advised to stall matters until the inheritance appears, so he will get half of that too.

I have income. He won't go for the inheritance, it's far enough off that he Cosby stall that king. Pensions are roughly the same. He's already said he'll be happy with only half the house. He's stuck in that if he stalls he'll have absolutely nothing. He owes mortgage payment and his salary won't give him much beyond housing. He's quite a low earner.

*can't stall that long

Definitely look for more than 50/50 with a child under 18, mine was younger but I asked for 70/30 in my favour and achieved that with some negotiation around other assets.

I wouldn't advise anyone to give up pension for housing, the stats, I believe for divorced women living in poverty in retirement are quite scary, I imagine mostly down to women trying to stay in the FMH at all costs.

Can you down size to a three bed now?

I'm a decent earner, I'm not worried about living in poverty tbh. I will not pay the £110k out of my pension, as I'll downsize in 5 years