Browse Forums Home Finance 1 Jan 27, 2010 7:45 am Hi there I would like to know what happen to the mortgage in case my partner and I would split. We commited to 50% of the mortgage each. Should this unfortunately happen, I would not wish to "have" the house. Would he need to to pay me out or if we decide to sell the house would the "value" of the house "pay" for the mortgage. I really don't know how this would go. Has anybody been in this situation? Re: Mortgages and separations 2Jan 27, 2010 8:48 am Either of those situations could occur. It depends whether the ex wanted to retain the house or not. If they wanted to retain the house then normally you would have the house valued and then they would approach a lender to repay the existing debt plus if there was any increase in the value of the home your share of it as well. If no-one wanted to retain the home then you would put it on the market and when the home sells the loan would be repaid in full and you would split the balance according to your separation agreement. Some things are worth waiting for. Re: Mortgages and separations 3Jan 28, 2010 8:47 am Not a situation anyone wants to find themselves in but knowing what happens if this did occur is a good thing. Kyton is correct - you also need to look at, at the time, is what is the home worth (valued at) and after agent’s costs, marketing etc and government & lenders fees is there enough to repay the debt. If one of you wants to keep the home and the ownership (name on the title) changes then the name on the loan also has to change - so the person buying the other partner out has to have enough income - according to the lender/s to service the new loan in their own right AND there needs to be enough equity in the home to increase the loan to pay the other person out. Re: Mortgages and separations 4Jan 31, 2010 11:10 am So if I understand it well. If the person wants to keep the house. He or she will need to get a "new" laon for the remaining amount that need to be paid under his or her name. Would he/she need to "pay" the other partner what she or he has paid towards the mortgage initially? Re: Mortgages and separations 5Jan 31, 2010 11:22 am I know someone who went through this situation, and it got really messy. Dont get me started on her, she was a *** b!atch... oh... too much said already!!!
Basically the nice guy stayed in the home, but he had to pay her out. They had to get the property valued, and he had to pay her for half of what the market value at the time was. He had to refinance with his lender so he could take on the full mortgage himself. Best of luck to you Re: Mortgages and separations 6Feb 01, 2010 9:16 am See example: Originally bought a home in joint names for $400,000 with a loan of $360,000 so you own $200,000 each and owe $180,000 each. Break up occurs - you get the house re-valued and it’s now worth $550,000 - and say the loan amount is the same. So you now own $275,000 each and owe $180,000. So to buy one half out the sum of $275,000 is owed - minus the loan amount for that half $180,000 = $95,000 to go to the partner being bought out. So the partner keeping the home now has a home worth $550,000 and the loan goes from $360,000 to $455,000 ($360,000 plus $95,000) and the partner leaving the home has cash for $95,000. Obviously there are costs associated with this such as government fees and charges for the transfer, solicitors costs etc which should be halved and paid for either from own savings or added to the loan. Re: Mortgages and separations 9Apr 22, 2010 12:07 am Hi funfun, What all above have said is correct. If a separation occurs the first thing to do is get the property valued & then work out how much is owing on the mortgage (to establish the amount of equity). Once that's done you have to work out how to divide that equity; and its not always a straight 50/50 calculation). If you're really bored look at section 75(2) of the Family Law Act to get some guidance on what is taken into account when making that calculation. Finally one party has to "buy" the other out; this is usually done by one party taking the title to the property (using a Transfer of Land) together with a refinanced mortgage (in their sole name) and the other getting a cash amount. My advice to all couples is to keep good records; in particular of any lump sum monies contributed towards the house at the time of purchase or during the relationship. One final word to the wise; don't sign or do anything without seeking independent legal advice. Having said all of the above I hope your relationship is long & happy and that you never have to worry about such things Re: Mortgages and separations 11May 02, 2010 5:38 pm we signed land and building contracts together with my spouse. such that (obviously) our names both appear on the contracts. now my spouse is applying for a loan by herself. will we need to to get new land and build contracts in my spouse's name alone, or can the bank approve the loan with the contracts in both names. VICTORY 1800, EN-SUITE, DOUBLE GARAGE, FAMILY ROOM AND ALFRESCO Land Settled: 20 July 2010 Site Scrap: 30 August 2010 Slab Pour: 20 September 2010 Frame Complete: 23 September 2010 Fascia and Gutters: 28 September 2010 Roof Complete: 06 October 2010 Lock-up complete: 28 October 2010 Plaster complete: 29 October 2010 Fix-out complete: 22 Nov 2010 PCI 7 FEBRUARY 2011 Re: Mortgages and separations 12May 02, 2010 10:22 pm She can get the loan herself and still have both names on the contract but she'd have to be crazy. Why would she take all the debt when you can take half the house? The names on the contract say who owns it. Not the loan. I recently went through a similar renovation and move scenario when updating our family home. We also swapped some rooms around and tackled a major… 2 10040 The HIA contract, in the term & conditions section states that "Commencment" is deemed when the drainage is started or the piers are dug or the slab is formed up (incase… 2 6178 Hi there, We've just build a new hardwood (Greybox) deck and am wondering whether firepit protective mats/surfaces are sufficient? I'm not sure that they're heat… 0 2116 |