Mortgage after separation

[Bollocksitshappenedagain]

I posted this in money matters but no replies so wondering if might get some advice here......

I know Mumsnet is not a substitute for proper financial advice (!) but hoping people can give me some points to consider in my situation. I am currently separated from my husband and as I have no intention of us getting back together I am thinking about financial situation.

I am the major earner and can manage the mortgage by myself.

Having had an initial half hour legal free consultation it seems like my options are:

Buy him out property and take on mortgage myself
He maintains a share of the equity which I would have to repay when youngest hits 18.
A mix of the above two options.

We currently have around 65% equity on the property so it will be expensive to buy out but My concern with option two is I would then be mid fifties and unlikely to get mortgage yet having to release £200k (potentially) from the property which not much scope to downsize as I will still have 2 children at home.

Has anyone been through this who can give an idea of issues to consider?

Your concerns around option two are exactly why mesher orders are no longer as common as they were.

If I were you I'd buy him out now if you can afford it.

Bollocks - I am in similar position. H wants us to keep paying mortgage until 2023
house will be paid off but I will be 58 /9 and still needing at least another 100k mortgage for a 3 bedroom for me and kids- he thinks they will have left home but really just shows how fucking little he knows his DC)

I bought my ex out (separated over a year, due to initiate divorce when 2 years have passed) and managed to get a mortgage in my sole name. I wanted the financial side sorted asap purely for peace of mind.
Make sure you get everything financial clearly set out in the separation agreement with your solicitor. If you can manage to discuss an agreement amicably, especially when kids are involved, before getting it finalised officially with solicitors it saves time and money - BUT make sure you do not get screwed because you want to 'be nice'. Make a list of things you want that are non-negotiable and another of things you are willing to compromise on to get what you want.

Obviously seek legal advice first and foremost.

IMO
I would buy him out
Keep your pension rights separate (if you have pensions)
Have clean break divorce.

So in your late 50's you own your home mortgage free, have the nest egg of a pension and are financially independent. If you need to downsize at that stage in your life, it is your decision and no one else is involved.

Oh and stay single...........

Believe me it's lovely :)

So you obviously need to get proper financial advice and presumably whichever option will also need your ex's agreement or that of a court. You don't say if you have savings to use or would have to extend your loan or a mix.

But, if viable, Option 1 looks better. If we assume e.g. the house is valued at 400k, with 65% equity you have (if my mental arithmetic is holding up) paid off 260k worth with, let's say, 140k remaining (this assumes the house hasn't increased in value since purchase - if it has you are obvs in a better position). So to pay your ex off you'd pay £130k (assuming 50:50), either out of savings or a loan / mortgage, if the bank is willing. You'd have any debt from that on top of the 140k (in our example) remaining, so a max of 270k to pay off if no savings. But you still have 130k worth of equity, that could go up in value, and you'll be increasing your equity as you go.

With Option 2, assuming you are splitting the equity 50:50 and your ex is paying half the mortgage, you'll pay off the mortgage faster. But even if all paid, you still only have 200k yourself, tied up in the house, and you have to find 200k to stay in the house if you really want to stay, or you face significantly downsizing. That's without considering the need for a pension.

Option A looks like it generates you more equity and more flexibility. You aren't tied to a timescale dictated by your ex.

Thanks for advise - seems to go with my thoughts.

House is £425 mortgage £148. No savings really so I would need to extend mortgage.

We signed an agreement that was a 70/30 equity split to me when we purchased as I paid deposit and it was before marriage.

If that still stands I have seen financial advisor and I can extend mortgage term and borrow enough extra to buy out. If that order becomes invalid on marriage and it was split 50:50 then I would struggle.

Another thing I wondered is whether forgoing ongoing maintenance in return for a reduction in equity from the property is an option.

I need to broach the conversation with him.....it's only been 8 weeks since split but currently on a variable rate mortgage and would really like to get back in fixed one way or another......

I will have a mortgage until 66/68 which terrifies me but hoping that I can make some overpayments earlier and potentially downsize before then anyway as dd's would be 30 ish by then so hopefully moved out!

(Or I guess at least contributing via rent!)

Believe me I am much happier now I'm single so definitely staying this way!

OK, so with your 70:30 equity split you are definitely better with Option 1 provided the bank is willing to extend the mortgage. You need to pay your ex, what, 80k or so. And you keep 180k or so worth of equity.

Yes, you'll have a mortgage longer, but you'll be generating more equity as you go. So that if you ever did have to sell you could afford a decent house.

If he is using company money for private holidays, isn't that embezzlement?