How to buy someone out of a house: steps & tips

What does it mean to buy someone out?

Buying someone out means giving the other owner of a property their share of the equity in the home to remove them from the mortgage. This is how you buy out an ex partner from a mortgage following divorce or separation, but friends or family who have bought together and decide to part ways some years down the line will go through the same mortgage buyout process. 

Before we explain how to buy someone out of a house, first a note of caution. Everyone who is named on the mortgage is jointly and separately liable for the payments. 

The formal term is jointly and severally, which means the same thing. If one person doesn’t pay their share, you’re both liable for the whole payment and will be chased by the lender and the credit score of all parties will be affected. That’s why it’s important to stay organised and make sure everyone knows their responsibilities.

How do you buy someone out of a house you both own?

To buy someone out of a house, you take over their share of the mortgage and the property in exchange for the equity you’ve agreed. The legal process is called a transfer of equity. Once the transfer of equity is complete, their name is removed from the title deeds to the property, making you the sole owner of the home and solely responsible for the mortgage. But first the mortgage lender must agree to the transfer of equity.

The quickest way to buy someone out is to use savings, but most people need to borrow money to cover the other person’s share. There are three main routes:

• Ask your current lender for a bigger mortgage if your mortgage deal has expired
• Request a further advance (also known as a top-up mortgage) if you’re still tied into a fixed rate. This can help you avoid early repayment charges (ERCs).
• Remortgage to a new lender as a single borrower.

If you’re staying with the same lender, they’ll need to give written consent for the buyout. They’ll also run a credit check and reassess whether your income is enough to cover the repayments on your own. Once you’ve proved you can afford the mortgage by yourself, the lender will agree to the transfer of equity.

If you switch to a new lender, the process works like a standard remortgage: your new lender pays off the old mortgage in full, the solicitor removes your co-owner from the title deeds, and you become the sole borrower.

In every case, the lender will want to see that:

• You have a stable income
• You have a good credit history
• You can afford the repayments alone

However, if your income is unpredictable or you’ve struggled with debt in the past, this doesn’t mean you won’t be able to buy the other person out. You might just need some extra guidance from a mortgage specialist.

Learn more: What is an adverse credit mortgage?

How do you buy out a jointly owned property with no mortgage?

If you’ve already paid off the mortgage or you paid for the property in cash, the process is usually simpler than buying someone out of a home with an existing mortgage. You might not need to involve a lender at all, but you’ll need a solicitor to transfer ownership. 

If you don’t have enough money in savings to buy their share of the property, you may need to take out a new mortgage on the property and buy them out that way. 

What if you have a joint mortgage paid by one person?

Sometimes one person covers the whole mortgage after a split. While this may keep the roof over your head, it doesn’t remove your ex’s responsibility. Their name remains on the mortgage, which means they’re still legally tied to the debt. This can cause problems down the line if they want to borrow money, as lenders will see they’re still linked to your mortgage.

Does my ex have to pay half the mortgage?

It depends on whether their name is still on the mortgage or not. If you’d like to buy them out of the house soon but the process isn’t complete yet, they’ll still be legally responsible for the repayments, even if they’ve moved out and they’ve told you they won’t contribute towards the mortgage. 

If the mortgage isn’t paid, the lender can chase both of you for the money. It’ll also damage both credit scores, which could make it harder to borrow in the future.

That’s why buying your ex out — and removing them from the mortgage completely — is often the cleanest solution.

My ex-partner wants to buy me out of the house

On the flip side, if you own a house with someone else and they want to buy you out, you’ll need to agree on the value of your equity share. It’s usually best to get the property valued by an independent surveyor so neither party feels short-changed. You will need to go through a transfer of equity process, by which your ex pays you your share of the property equity and removes you from the title deeds and mortgage (if there is one).

Once the money changes hands and the legal paperwork is complete, your name will be removed from the deeds and you’ll no longer be responsible for the mortgage. Until this is complete, you are still legally responsible for paying the mortgage, even if you have chosen to move out in the interim.

You might also like: What is a mortgage deed?

Can you get a mortgage after divorce?

Yes, as long as you can show you can afford the repayments, being divorced won’t stop you from getting a mortgage. Getting a mortgage after divorce follows a similar process to any other mortgage application. Lenders will still judge your application on the usual criteria: income, outgoings, credit history and deposit.

If affordability is tight, an expert broker like Tembo can help you explore family-assisted or specialist options that you might not find on the high street.

Learn more:How much can I borrow for a mortgage?

What fees will I pay to buy someone out of a mortgage?

You’ll need to pay legal fees of between £250 to £500 for the transfer of equity. You must pay a fee to the Land Registry to process the deed of transfer which starts from around £50. A valuation, mortgage broker and lender fee may also be payable. 

Can I afford to buy my partner out?

Before you start the process of buying someone out of the house, you’ll need to work out whether you can afford it. Will you be able to afford the mortgage payments on your own, alongside your other financial responsibilities? If your income isn’t enough to cover the mortgage solo, you may decide to sell the property and use your share of the equity to buy a cheaper property. If you’d prefer to keep it, you might have other options: 

• Income Boost: Add a family member or friend’s income to your application to boost your affordability and get a bigger mortgage. They’ll have to step in and help with your repayments if you get into financial difficulties, but their name won’t be added to the property itself.
• Springboard mortgage: Instead of putting down a large deposit, a family member can put around 10% of the property price into a secure account with the lender. If you default on your mortgage, this money may be used to cover any missed payments, but if you keep up with your repayments without any issues, your family member will get their money back plus interest after a set period.
• Deposit Boost: A family member remortgages their own home to gift you equity.
• Professional mortgage or key worker mortgages: Some lenders offer up to 5.5–6x income for teachers, doctors, lawyers and NHS staff.

If you don’t have family support, don’t panic — there are still specialist schemes out there. A broker can help you find them.