How do I remortgage to buy out my ex-partner's share of the house?

Full answer

Buying out a former partner's share of a jointly owned home after a separation or divorce is a common but multi-step process, involving both a change of mortgage and a formal legal change of ownership. **Step one: agreeing the property's value and each person's equity share** Before anything else, both parties need to agree (or have independently valued) the current market value of the property, and work out how much equity each person holds after deducting the outstanding mortgage -- this equity split may not simply be 50/50 if the original ownership shares were unequal, or if one party contributed a larger deposit and this was legally documented. **Step two: remortgaging to raise the buyout funds** The partner keeping the property usually needs to remortgage (either with their existing lender, if they will allow it, or with a new lender) for an amount sufficient to pay off the existing joint mortgage AND pay the departing partner their share of the equity in cash. This new, larger mortgage is assessed purely against the remaining partner's own income, outgoings, and credit profile -- they cannot rely on their ex-partner's income for affordability once they are removed from the mortgage. **Affordability can be a real obstacle** A common practical difficulty is that the remaining partner, now applying on a single income where the mortgage was previously assessed on two incomes, may not be able to borrow enough to both take over the existing mortgage debt and raise the additional funds to buy out their ex-partner's share -- in this situation, options can include a longer mortgage term to reduce monthly payments, seeking a joint mortgage sole proprietor arrangement with a family member, or ultimately selling the property if a buyout is not affordable. **The transfer of equity** Alongside the new mortgage, a solicitor handles the legal transfer of equity, formally removing the departing partner's name from the property's title at the Land Registry and updating it to reflect sole ownership by the remaining partner. This is a distinct legal process from the mortgage itself, though the two are usually completed simultaneously so that the new mortgage funds are available at the moment the transfer takes place. **Stamp Duty Land Tax on a transfer of equity** A transfer of equity between separating partners can potentially trigger Stamp Duty Land Tax if 'chargeable consideration' is given -- broadly, this includes cash paid to the departing partner for their share, and/or the value of any mortgage debt the remaining partner takes on beyond their existing share. However, transfers made specifically as part of a formal divorce or dissolution of a civil partnership settlement, whether by court order or a written separation agreement, are usually exempt from SDLT regardless of the consideration involved -- this exemption does not automatically apply to unmarried couples separating, so cohabiting couples should check their specific position carefully. **Worked example** A couple's jointly owned home is valued at £400,000 with £200,000 remaining on their joint mortgage, leaving £200,000 equity split equally (£100,000 each). One partner remortgages for £300,000: £200,000 to clear the existing joint mortgage and £100,000 to pay their ex-partner's equity share directly. A solicitor simultaneously completes a transfer of equity, removing the departing partner from the title. Because this is part of their formal divorce settlement, the transfer is exempt from Stamp Duty Land Tax despite the payment made. **Practical tip** Start the mortgage affordability conversation with a broker early in the separation process, since discovering you cannot actually afford to buy out your ex-partner on your own income can significantly change the overall financial settlement discussions and timeline.

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