Not a homeowner, but I've read a lot of forum posts about people separating and wanting to take over the mortgage themselves, or add another party on to it. There seems to be a lot of different opinions and expectations and still talk of "buying out".
For example: A & B buy a house in 2006. In 2010 they are in negative equity to the tune of 100k. A & B split up. C moves in with A and wants to buy out B.
If C has to buy out B, deposit plus what was paid so far on mortgage, B is in a great position. Similarly, if B can just walk away he is in a better position than most. Or, does B OWE the 50k to A/C?
If they sold the house, they would both owe 50k each, but the A/C couple would owe 100k between them if B was allowed walk away, so as a unit be worse off, so I would deduce that B does owe them 50k.
I read you can remortgage together to do this, but why would the bank allow C to be party to a mortgage where the mortgage is twice the value of the house?
Sorry if these are stupid questions! I genuinely am confused as to how this works...