Buying new home after Separation

L

LindaN

Guest
I am in my late fifties and in the process of marriage breakup and negotiating separation agreement. Family home is being sold for in excess of €1m, and there are some other properties also involved. Net individual assets will be more than sufficient to buy a new home and a small investment property and there is likely to be agreement on both sides. I have put a booking deposit on a new property, and need to have 10% full deposit in two weeks time. Before the family home is sold, with savings and borrowing I can get hold of what I need for the deposit, but this will leave me with no spare cash. The family home is going on the market in the next couple of weeks, and other properties in the area sell very quickly. Can anyone tell me if I'm risking too much in borrowing the 10% of the house price before the family home is sold. The new property will not be ready to move into until Spring next year, by which time the next phase in the development will be on the market at, I suspect, a substantially higher selling price. I'm all of a dither, as this is huge for me!
 
I think you get your first time buyer status back after separation but there may be problems , get advice on this point. This will have a large bearing on stamp duty for you for when you buy your next €1m gaff :p

As long as the agreement is signed and dusted and is amicable and adult and you both back EACH OTHER up on the financial facts if asked I'm sure the banks will have no proble with your 10% . Its a bridging loan in effect .

This means each of you must accompany t'other to their respective banks just the once .
 
You only get your first time buyer status back if one party remains in the family home.
 
The risk you are taking is that if for whatever reason the family house/other assets are not sold before the new house is ready you will either have to take a mortgage on the 90% (assuming you qualify under the lenders criteria) or in a worse case scenario you could lose your 10% deposit if you unable to close.

Sarah

www.rea.ie
 
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