All Topics / Help Needed! / Buying a partner out of a mortgage

Viewing 4 posts - 1 through 4 (of 4 total)
  • Profile photo of redlegger9redlegger9
    Member
    @redlegger9
    Join Date: 2012
    Post Count: 1
    December 12, 2012 - 6:22 am

    HI Everyone,

    Newbie here after some advice before i shell out for a lawyer :)

    Here is my dilemma.

    My Ex and I have two investment houses –

    House 1 –

    Approx Value – 320K

    Amount Owed – $235K

    House 2

    Approx Value – 420K

    Amount Owed – 437K

    Equity in House 1 was used to purchase House 2

    My Ex would like me to buy her our of House 1 – she wants approx 50K.

    Questions:

    1. What is the process i need to go through to make this happen?

    2. Can i reapply for finance in House 1 for $285K and use the extra 50K to pay my Ex?

    3. Is what i am asking not possible because the equity in House 1 is being used against House 2?

    Thanks in advance

    RL

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    December 12, 2012 - 7:00 am

    The bank will want to get its money on loan 2 if you are releasing the ex from house 1. The ex needs to remortgage #2 & pay your settlement back to reduce the loan.

    Everythings possible you may need the accountant, banks & lawyers.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    December 12, 2012 - 7:55 am

    Is she already your ex? If so you may have stamp duty and CGT to consider.

    If you are going through a separation then the transfer could be exempt of stamp duty and CGT could be rolled over – but watch out for CGT pregant transfers as you will inherit the tax liability.

    Process would be

    1. Get a pre-approval to make sure it is theoretically possible.

    2. Seek tax advice

    3. seek legal advice

    4. apply for full approval

    5 arrange for the conveyancing and stamp duty exemptions etc

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of PLCPLC
    Participant
    @plc
    Join Date: 2012
    Post Count: 400
    December 12, 2012 - 2:26 pm

    Are the loans stand alone or cross collaterised?

    If cross collaterised, she may not see a cent of the 50K as the bank might divert it all to House 2.

    Cheers

    Tom

    PLC | Phoenix Loan Consulting
    Email Me | Phone Me

    Melbourne based Mortgage Broker | Making Finance Simple

Viewing 4 posts - 1 through 4 (of 4 total)

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