Buying Out A Partner (House)

[Patsy33]

I was wondering if any of you have knowledge concerning buying out a partner, from shared house. My daughter and her long term partner have parted. She pays the mortgage and he pays all other bills. She is currently living with me and their little son, my grandson. The 2 bedroom house is worth approx. £150.000. He has said she'd probably get about £20,000, but I don't think that's right? They've been in house for about 10 years. Any help/ advice?

[Patsy33]

Prudie, that's what she's worried about. He works very hard, but a bit silly when it comes to money. He likes his drink and going off with his mates from time to time, e.g. weekends away.

[ubasses]

Pudie has made a very important point, you cannot just remove anyone from a Mortgage. He will have to reapply and meet all criteria on his own income, and also ask for £20,000 (approx) increase, unless he has that sum tucked away to give her.

[Ryzen]

The couple have a young son...the mortgage and any equity is a minor concern.

[Patsy33]

They love their son very much and is very well looked after. A very happy, good natured little boy, 21 months. I look after him 3 days a week while she works.

[AuntPollyGrey]

Your daughters partner has to basically buy the house from himself and your daughter, at an agreeable price based on market value. They then split what's left of the equity after mortgage and conveyancing costs have been settled, give your daughter her cut ,and use his cut as a deposit when applying for a mortgage on the property in his own name. This can all be done consecutively and they need a conveyancing solicitor who will organise all the details. For these purposes you can't 'take your name' off a mortgage just as you can't add someone on, it has to be a new transaction.

[Patsy33]

Thank you APG. Very informative.

[Ryzen]

APG...and then the couple,or the courts, will agree on how the sons future well being will be financed..up until he leaves full time education.

[AuntPollyGrey]

You are welcome patsy.