Selling family home post separation, to buy new home

Fyffes

New Member
Messages
5
My partner and I are separating. We are both named on KBC fixed rate mortgage for the last 13 years. We are selling the home and ex partner agrees that I am getting all profits from this sale to buy a house for me and the children (2 in Uni & 1 teen). The house is valued at 330,000. There is 185,000 outstanding on the mortgage. Term remaining is 11 years. I work permanent part time with an annual gross salary of 31,500. I have no other loans. I'm 50. Will I get a mortgage in my own name on these earnings with a deposit of approx 145,000 from house sale and 30,000 savings? Are there any financial pitfalls I might be missing in the house sale arrangement? I rang KBC today who mentioned 'transfer of equity', put me through to Sales where no one answered.
Thanks for any advice
 

Thirsty

Registered User
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3,769
So you will have around 165k in a deposit & say 30k × 3.5 available via mortage.

That would give you a purchase price of €270k.

Do you really want to move house? You would do much better to have the house transferred into your name & take over the existing mortgage.
 

elcato

Moderator
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3,816
How much do you want to spend on the new house ? Is staying put and taking over the mortgage an option ?
 

Brendan Burgess

Founder
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47,801
The advantage of selling and buying again is that your ex will no longer be on the mortgage or the deeds. As he is no longer on the mortgage, he would be able to get a mortgage himself.

But as others have pointed out, it makes no sense otherwise. You will not be able to buy a similar house. You will face the huge costs of selling and buying.

You should ask KBC if you can change the mortgage into your own sole name. I think that they will refuse given your low earnings, but no harm in asking.

An alternative to get him off the mortgage would be for someone else to replace him on the mortgage.

Brendan
 

Fyffes

New Member
Messages
5
So you will have around 165k in a deposit & say 30k × 3.5 available via mortage.

That would give you a purchase price of €270k.

Do you really want to move house? You would do much better to have the house transferred into your name & take over the existing mortgage.
Thanks for those figures
Yes, really hoping to move house as location no longer suits our needs
 

NoRegretsCoyote

Registered User
Messages
4,307
@Thirsty

Will a bank lend 3.5 x income to a 50 year old? Presumably term wouldn't go much beyond 15 years so repayments will be higher than someone younger who can take out a longer term.
 

Fyffes

New Member
Messages
5
The advantage of selling and buying again is that your ex will no longer be on the mortgage or the deeds. As he is no longer on the mortgage, he would be able to get a mortgage himself.

But as others have pointed out, it makes no sense otherwise. You will not be able to buy a similar house. You will face the huge costs of selling and buying.

You should ask KBC if you can change the mortgage into your own sole name. I think that they will refuse given your low earnings, but no harm in asking.

An alternative to get him off the mortgage would be for someone else to replace him on the mortgage.

Brendan
Thanks for this
Would really like to completely disentangle my finances from his and a fresh start is very appealing but seemingly unrealistic from the advice given.
I didn't even realise just getting the mortgage on the existing house changed to my sole name would be an issue.
 

Thirsty

Registered User
Messages
3,769
@Fyffes - in that case - sell and buy again.

If however you can bring yourself to staying where you are; a settlement agreement that allows for the house to be sold in (say) 10 years time and the cleared funds paid to you would be better for you financially, provided you can afford the mortgage payment on your own salary.

Is returning to work full time an option for you?

@NoRegretsCoyote - as long as there's no arrears or other negative credit issues, I don't imagine the OP will have a major problem. At age 50 the OP still has another 15 years of working life; so you'd be looking at a mortgage of say €105k over 15 years - around €700 a month or so?, rough guess.
 

RedOnion

Frequent Poster
Messages
6,198
I didn't even realise just getting the mortgage on the existing house changed to my sole name would be an issue.
It comes down to affordability.
With a salary of 31k, you've got a take home of about 2,100?
No bank will approve a mortgage with repayments of 1,275 per month on that salary (assuming 3% over 15 years - its about 1,600 over the 11 years you mentioned).
 

Fyffes

New Member
Messages
5
Thanks Thirsty. Full time not an option

Thanks RedOnion. Yes, take home is 2,100 p.m. Current mortgage repayments are 1,600 p.m. That just about bangs the final nail in!
 

Thirsty

Registered User
Messages
3,769
Final point to be aware of as you neogtiate through settlement issues, the family home is only one element; nothing is settled until everything is settled.

You'll need to talk about pensions, life assurance, inheritance, child maintenance, co-parenting / access etc

Be sure & take legal advice, everyone's situation is different.
 
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