Separated, need to buy rather than rent

F

franksm

Registered User
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Hi

Am separated, with divorce on the way, have a home worth 330K and with 184K owing in mortgage, payment of which is roughly 1300 per month.

For my own reasons, I wish to leave the house with my ex for now, but will split it or have her buy my 1/2 a couple of years down the line.

Now, though, I need to buy a house for myself. Average prices for what I am looking at are 350K, which would probably work out to a monthly mortgage payment of 1700pm. Average rent anyway is at least 1700pm, so I prefer to buy.

Salary is 63K per year, up to about 70K with bonus. I have 25K in savings, but would have to use that to pay for stamp duty and fees. No loans, credit cards in the black, and perfect credit history. Am 39 and in full time employment, no kids/dependants.

What are my chances of getting a 100% mortgage for 350K as someone looking for a "home" but not as a first-time-buyer ?

Thanks
 
As far as I know (from a recent friends separation) you will not have to pay stamp duty. There are exemptions for separated persons. So this means you will have a deposit to pay.Sorry to hear of your situation and good luck.
 
the treatment of separated/divorced people is as follows

(b) A spouse to a marriage the subject of a decree of judicial separation, a deed of separation, a decree of divorce or a decree of nullity in the case of the first acquisition of a house by the spouse following the separation or divorce provided that the spouse had, in relation to the former marital home,
  • not retained an interest in that home;
  • Immediately prior to the date of the decree of deed of separation is not beneficially entitled to an interest in a house other than the marital home;
At the date of the decree or deed of separation, the separated/former spouse must also be in occupation of the home which was occupied by both spouses prior to the separation or dissolution of marriage.
Click to expand...

The OP must dispose of his interest to avail of the waiver of stamp duty.
 
Dispose of interest - gotcha. I need to work out my options there.

Credit cards in the black - I never let the two cards go into the red, it's too expensive in fees & interest, so I always keep them at about +EUR1,000. Same with overdraft - I just don't do it.
 
No problem Lyonsie

I guess what I want to know first off, is how will I get a mortgage for 350K when I assume banks are still normally only giving 3x salary, which in my case would be about 200K - which wouldn't get me onto the property ladder again at all. Am currently paying 1300pm in mortgage, and can readily afford 1700pm that 350K would demand.
 
You have a house worth €330k with a mortgage of €184k. That means your total equity is €146k. Assuming you share it equally, then your wife should pay you €73k now to get full ownership of the house. Will she be able to come with €73k? The existing lender may be flexible and increase the mortgage. Alternatively, she may have to find a friend to buy her half of the house.

That leaves you with €73k. With a salary of €70k, you should be able to borrow €300k.

If she does not want to buy you out, could you buy her out?

A messy alternative if you are getting on well together, is to buy another house jointly by releasing equity in your current home. This would cost you more in stamp duty and should only be a last resort.

I don't think you should be in any hurry to buy. If it takes time to sort out the financial aspects of the divorce, don't rush things. Move out. Rent an apartment. When everything else is sorted, then you will be free to start looking again without any complications.

Brendan
 
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