Is it possible to get mortgage on House & Lands

James 007

A friend is going through the difficult process of a divorce & trying to sort out his finances with his ex-wife. Due in courts end of the month. Is there anyway possible for him to get a new mortgage on the house/lands based on the below to somehow try & pay her & have her transfer deeds fully in his ownership. The deeds to house/lands would be in both names at present.

*House worth €300K mortgage left to pay €20K, he & 4 kids live in the house

*70 acres of good land, 10 acres of bog, currently rented for €18K per year

*Has 4 kids living with him, 2 in college, 2 in school with 2-3 years left, he pays for everything

*He works 5 days a week, wage at €32K per year

*Kids Allowance, she has this

eusap

The difficulty will be to get a mortgage based on income, total income 50k per year. Assume land is worth 700k + 300k house /2 means a 500k mortgage.

The real questions is how much does he owe her, who paid for the land etc.... really his solicitor should be advising on this and the likely amount at the end he will have to pay

awec

I am pretty sure you cannot include the land like this. I think it's only the first 1 acre that can be included in the mortgage.

Not certain on this though.

James 007

https://www.boards.ie/discussion/comment/120438626#Comment_120438626

The land & house was handed down to him. I get that his solicitor will need to advise what he needs to pay her. The question I have can he get a mortgage against the lands/house in order to pay her off whatever he will need to owe her. Is it possible to get a mortgage on both the lands & property in some way. Its a tough situation he is in. Is there any other solution he could explore, thanks.

eusap

The big question will be how much he has to pay?

If the land is not included and he owes half the house then he will be ok getting a mortgage, but really its a question to his solicitor, will he owe anything? Did the wife contribute to anything, not just cash but time/effort (raising kids etc...) which we can't answer here

Peregrinus

In principle there is no difficulty about mortgaging two properties - say, a farm and a residential property - to secure the same loan.

The question will be whether the bank is willing to advance the loan in the first place. Merely that you have sufficient security to offer will not be enough; the bank wants to be satisfied that you will be able to service and repay the loan without them needing to enforce the security.

So, two relevant questions that you don't answer in the OP:

1. How much does he want to borrow?
2. Does he have enough income to service a loan of that amount?

James 007

Thanks for the comments, yes, the amount will depend on the amount owed through the courts. With the kids involved I would hope their needs would have to be put first too. I'm taking a guess at €200K at least.

The question is, is there any way he could service such a loan. Just wondering if anyone has been through this before to offer advice.

handlemaster

As they say go to the Altar with 70 acres come back with 35.

James 007

https://www.boards.ie/discussion/comment/120461458#Comment_120461458

Yeah, but really the kids needs should be taken into account too. Surely it would split 1/3 for each him, her, the kids. Rather than losing the farm I was hoping there would be a way out to bridge his difficulties for now.

handlemaster

https://www.boards.ie/discussion/comment/120476356#Comment_120476356

Not really if no prenuptial signed then 50/50 i would think. Kids not a factor as they bolth share same equally. Not legal person but would think this is the rationale