Wilson Finance Solutions
There’s no doubting that Divorce is a stressful time for all parties involved. However, in many instances one of the parties wishes to remain in the family home and doing so isn’t as easy as many would think. Below are some of the important points to remember.
What will the banks require?
Firstly, you need to agree with your ex-partner on a figure that will see you retain the family home.
This agreement may involve you taking over the current mortgage plus increasing the loan to buy-out your ex-partner. This will be dependent upon the terms of your agreement.
At the time of an application being submitted, lenders generally require a copy of a draft transfer of property and a draft separation of assets. The solicitor assisting you with your separation proceedings will be able to produce these for you.
Can you service the loan?
As with any loan application you will need to be able to show that you can afford the new loan in your own right. Your chosen lender will assess your application like any other, taking in to consideration your income and expenses, dependent children and previous credit history.
What if there is not enough equity in the property?
In some cases, there is not enough equity in the home to be able to buy out your ex-partner. If unsure of the value of your property, you should engage an independent property valuation firm to value the property.