Buying out ex-partner - associated costs.

N

nennec

Registered User
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Hi All,

I bought (50/50) with my then girlfriend approx. 2 years ago. We've since split and she'd like to me to "buy her out" of the house. To be honest I'm not sure that I'd get approved for the mortgage but I'm curious about any additional costs that I'd have to pay.

As far as I can tell I'd continue to receive TRS. Is this correct? (I think it's for the first 7 years after you take out your first mortgage)

I'm pretty sure that I'd be liable for stamp duty but I'd be grateful for info on how this might be calculated i.e. half the value of the property or all?

Are there any other costs (excluding solicitors fees obviously) that I'm not considering?

House value: 380k (approx)
Outstanding mortgage: 305k (approx)

Thanks for any info at all :)
 
HI,

You will not be liable for stamp duty as you are not buying the house, only transferring full ownership to you, so you retain your first time buyer status.

you will get full mortgage interest relief at source for a single person (ie, 10K @ 20%)

use same solicitor as cheaper on you both - should only take 4 weeks to transfer full ownership

The banks will take into consideration that you have already been paying mortgage (half of it) regularly for 2 years and may therefore be willing to let you take on mortgage. But this is a high mortgage for a single person - crunch your figures very carefully and stress test to an additional 1%.. - don't forget you will have to finance buying her out & solicitor fees..
 
You might also want to consider extending the term of the mortgage, with the lender's approval of course, to lessen the short-term impact on the old cash-flow.
 
AFAIK the stamp duty exemption only applies if married.

Did the same thing myself and whereas we are still both FTBs for TRS he paid stamp duty (we actually got audited)
 
I've just done the same thing i.e. bought ex out of property.

As I was a first time buyer when i purchased the house, purchasing a further interest in the same property does not give rise to a stamp duty liability....my solicitor double checked with the Revenue and this is the case- no stamp duty!!
 
Hey All,

Thanks for the replies. I spoke with my broker yesterday evening and he confirmed that I would not be liable for stamp duty (wahoo!). He also thinks that I'd get the mortgage if I can convince a parent to act as a guaranteur on the application.

Fingers crossed I guess!

Thanks again for all the replies.
 
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