Buying with an ex?

A reader is planning to remortgage so he and his ex-partner can buy a new property together. However, he is unsure about the best step forward.

Tony Davis, myfinances.co.uk mortgage expert from Mortgage Meadow, takes him through the problem and what it means to his finances.

Mike from Southampton:

My wife and I are separating but want to keep our current house for investment purposes but neither can afford to buy the other out.

What we would like to do is remortgage in order to purchase a flat for my wife to live in but we would own both properties on a 50/50 basis and thereby both have the chance to reap investment rewards to help with pensions etc in the future.

My wife has a friend who would live with her in the flat and pay rent while I would live in our existing house.
My wife and I paying the remainder of the mortgage 50/50.

I know this sounds strange but we remain great friends and totally trust each other. We will make sure everything is covered by legal agreement if necessary.

My question is: Is it likely our bank would advance us the money in this rather unusual situation? We have a house worth £310K with nearly £260K equity at present. We would be looking to borrow about £150K.

Tony replies:

Most things are possible. This would very much depend upon your financial circumstances and whether the flat would be bought out right.

It is not possible for me to give the level of advice that you need without completing a full financial review and factfinding mission, but certainly, subject to you and your wife’s status what you are looking to achieve is possible, albeit not common place and a competent and experienced advisor would be able to broker a deal for you.

I would be pleased to talk with you and advise you should you wish to get in contact with me.
 
If you have a question for Tony, go to the myfinances.co.uk Ask the Mortgage Expert section.

Or for more information or mortgage advice go to Mortgage Meadow.

Mortgage Meadow is an independent mortgage broker and is authorised and regulated by the Financial Services Authority.