Can anyone explain how buying out of a mortgage works?

[FlyingSoloFlyingFree]

I am terrible with figures but need a rough idea to see if it's viable to buy H out of our existing property.

House is worth approx £250k, current mortgage is about £90k. So the equity in the property is £160k.

How would we split the equity (can you just release it as cash without selling?) and what size mortgage would I then be looking at?

Thanks :)

You need an appointment with the bank to get exact figures.you can release up to 85% of equity of your home, based on the mortgage provider's valuation of course.

As for how big you'll be able to release, it'll be down to your affordability.

If you were going to buy him out at 50%, you'd need to get a mortgage for £170k. (90k existing mortgage and 80k to him )

You may be entitled to more than 50% of the equity though.

You'd need to cover current mortgage at £90k plus extend it by another £80k to buy out your H therefore total mortgage of £170k.

It's rare to split assets 50/50 though unless there are no DC or it's a short marriage. Other assets such as pensions (which can often be a substantial asset) need taking into account as well.

You have 160k equity, so he needs half of that and your looking for a mortgage of 170k so you can give your ex his 80k... so double what your paying now and that will be roughly how much your new mortage will be, and he needs to take his name off the mortgage..

We do have a child and both have pensions but in the interests of being fair I wasn't planning to take them into account - would a bank insist on it though?

I know I sound very naive, I'm not but this isn't a situation I'd ever imagined being in and numbers are really not my strong point.

How is it not fair to take all assets into account?

You must see a solicitor.

The house is your child's home , you should be asking for a lot more than 50%.

The bank wouldn't insist on it but the value of your pensions might have a big impact on how much equity you're entitled to receive, ditto for how old your child is. This would of course therefore influence how much you'll be asking for from the bank.

As and when you get round to divorcing the courts will insist that all material assets are taken into account, especially pensions which are often the second biggest (sometimes the biggest) asset in a marriage. They won't agree to sign off a consent order without it. Don't screw yourself out of what you're legally and reasonably entitled to because emotions are running high whilst you're separating. Once those emotions have settled down you'll look back and be sorry that you gave away what was rightfully yours to someone you no longer have an attachment to.

We're trying to keep things as amicable and fair as possible and although it's a split with issues on both sides it was me who initiated it so I'm really aware on not wanting to screw him over. But yes I do need to consider DD. Much more to think about than I'd really imagined 🙄

Solicitor solicitor solicitor.

Yes I guess you're right, I didn't want it to come to this so soon but H has decided it's over even though I just wanted a bit of a break to see how we both felt. Guess a solicitor is the sensible move now.