Can I buy someone out?

J

jeny

Registered User
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98
Hi all,

I’m hoping someone here might me.

I am in a situation where by myself and my (now ex) partner have a mortgage on our home. We obviously need to sell now that he has walked out however the issue is that we have other debts and now our home is also negative equity.
My question is, is it possible for him to transfer his part of the loan or claim to the house to me via some form of legal document, and then for me extend the term out a bit to try and keep the home for myself and our child instead of selling it loosing money and having no where to live. With the other debt there is no way a bank would give me a mortgage on my own?

I’m a little bit confused as to what our options are.

Thanks
 
You can buy him out but you will need to get mortgage approval off the bank. Given that the house is in negative equity, I would think it's unlikely that the bank will approve a mortgage for you.
 
jeny said:
Hi all,

I’m hoping someone here might me.

I am in a situation where by myself and my (now ex) partner have a mortgage on our home. We obviously need to sell now that he has walked out however the issue is that we have other debts and now our home is also negative equity.
My question is, is it possible for him to transfer his part of the loan or claim to the house to me via some form of legal document, and then for me extend the term out a bit to try and keep the home for myself and our child instead of selling it loosing money and having no where to live. With the other debt there is no way a bank would give me a mortgage on my own?

I’m a little bit confused as to what our options are.

Thanks
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I dont think it's possible for him to just sign over his share of the house to you. For the house to 100% belong to you, you would need to apply for a mortgage on your own for the outstanding amount.

Are these other debts in your name, his name or both?

Why do you "need" to sell the house? Is it because you cant afford the mortgage by yourself? Anyway he can help towards the mortgage untill all other debts are paid and you are in a position to get the mortgage by yourself?

If you were to sell the house thats in negative equity, i believe that before you do this you need to have a loan agreement in place to cover the outstanding amount. I'm open to correction on this.

Another option is to rent your house out and find another place to live untill you are either in a position to sell or apply for the mortgage by yourself.
 
I think you need to get a complete handle on your overall situation.

Are you married? This makes a difference in terms of how you can, ultimately legally, deal with things. For example, if you are married then you can seek maintenance for both yourself and children. If not married, its children only.

As regards the house, if its in joint names your ex has equal responsibiity for the debts. Is he discharging his share?

From what you say, a bank will not lend you money or increase your mortgage to release your ex from his responsibilities. I think you probably need to talk to MABS to try and get a realistic assessment of your finances. If you can sell, can you cover the outstanding mortgage? Could you try any of samanthajanes suggestions?

It may be that you'll need some financial help perhaps from family - is this a possibility?

mf
 
Also the situation is different with stamp duty depending on whether you are married or not
 
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