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Can you buy someone out of their part of a mortgage house

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  • 09-06-2018 10:56am
    #1
    sexmag
    Registered Users Posts: 1,303 ✭✭✭


    Hi,

    I'm wondering is it possible to buy someone out of a mortgaged property?

    My sister has a property that she got with her ex, he paid half the deposit and 1 month of a mortgage payment before they split and he hasn't paid a cent since and that was 8 years ago.

    She has 4 kids (2 with ex and 2 with new partner) and has been paying the mortgage alone for 4 years and with her new partner for 4 years.

    Due to her financials her and her partner on paper can't afford the mortgage even though they've been paying it without fail so the bank won't allow her to remortgage the property with her new partner.

    So she wants to know can she pay her ex what ha paid originally and have him legally waive all rights to the house,is that possible?

    The ex is happy to do it as he wants a new mortgage but can't get one because of this situation


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    #2
    Glass fused light
    Registered Users Posts: 1,576 ✭✭✭Glass fused light


    There are 2 linked issues
    1) the legal ownership of the house
    2) the money owed on the mortgage


    1) the legal ownership of the house
    The ex can agree to waive his rights to the house for repayment of his financial input and even if she can't get the mortgage sorted it would be advisable for her/them to come to a legal agreement to this effect. He could still legally own the house but she would gain any financial benefit or loss and he could not force a sale. And he would agree to sell his portion once certain conditions were met eg his release from the mortgage. If possible have the home registered in her sole name but the bank may veto this. Worry about the new partners rights only after the ex has signed off.

    2) the money owed on the mortgage
    The problem will be that she and her new partner can't get a new mortgage and the bank will not release the ex from the existing arrangement. he (the same as she) therefore owes 100% of the loan back to the bank. It's not in his best interest to sign away the asset when he still owes the bank. Unless something else changes until such time as the mortgage is cleared he won't get another


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    #3
    sexmag
    Registered Users Posts: 1,303 ✭✭✭sexmag


    Thanks for your reply.

    I guess the ultimate outcome shed like is t9 not have him named on the house and just continue paying the mortgage like she has been until it's finished.

    I understand the banks position but she has requested to be the sole debtor or with her partner for the mortgage which they have paid with evidence of no problem for years and the ex wants out but the bank don't seem to be able or want to budge. She said the bank adviser she met was nice and understood the position as she's not the only one in the circumstances but due to bank policy of requirements that need to be met they can't do it.

    It's a bit mad really


  • Options
    #4
    cronos
    Registered Users Posts: 2,719 ✭✭✭cronos


    Sadly I see only two options here, assuming you have already tried a mortgage broker to see if transferring to another bank would change anything:

    1. Do nothing and keep the arrangement as is. Won't be good for your ex though.
    2. Sell the house and buy one you could get a mortgage on. Then pay off the ex.


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