How To Calculate Buying Someone Out Of A House UK

By Kristian Derrick

Last Reviewed: 5th October 2023

Having to work out how to buy someone out of a house is not that unusual, with government data showing that thousands of divorce and separation applications are made every few months in the UK.

If you share your mortgage with someone else, there may come a time when you need to buy them out due to a breakup or divorce, or because they’ve simply decided to move out.

Buying someone out of a house or performing a mortgage buyout can seem like a complex process, but with the proper guidance, it doesn’t have to be.

Here’s everything you need to know about how to calculate buying someone out of a house.

What Does Buying Someone Out of a House Mean?

Buying someone out of a house means purchasing their share of the property you own together.

It involves one property owner purchasing the equity share of the other owner.

For example, if you and your friend, ex-partner, or sibling own a house together, and you want to get sole ownership, you’ll need to buy them out of the mortgage.

Once you buy out the other person, you can remove their name from the property’s title deed or any other documents related to the property and release them from the mortgage.

You’ll then remain as the only homeowner, solely responsible for the mortgage repayments and property.

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How to Calculate a Mortgage Buyout

You can calculate a mortgage buyout through the following steps:

1. Determine the Property Value

Start by getting an up-to-date property valuation to determine how much the property is worth.

You can get a valuation from your lender at a fee, or look for a free valuation from real estate agents. Most agents can send you a valuation within hours.

You can also hire a professional chartered surveyor for a more formal valuation, but it will require payment, and you may need to wait a few weeks or days.

2. Identify What You Still Owe on the Mortgage

You can determine how much you have left on the mortgage by asking for a redemption statement from your lender, which shows how much you have left to pay, any due interest, and associated redemption fees.

3. Ascertain Each Parties Share of the Equity

Work out how much equity you each have in the property.

The total equity will be the total property value minus the outstanding mortgage.

For example, if the total property value is £400,000, and you have £100,000 left to pay on the mortgage, then the total equity in the property would be (400,000 – 100,000) = £300,000.

Once you determine the total equity in the property, you simply need to calculate the percentage you each own to determine the other party’s share.

If you have an equal share, divide by two to determine how much you need to buy the other party out.

If you’ve contributed different amounts for mortgage repayments or the deposit or the home is part of a divorce settlement, the calculation can be more complicated, and you may need your lawyer to manage it on your behalf.

How Can You Finance a Mortgage Buyout?

A mortgage buyout may require a hefty sum, but you can fund the purchase through various ways, including:

  • Remortgaging – You can remortgage from a joint to a single mortgage and free up the extra cash you need for a mortgage buyout. The remortgaging process is similar to taking out a new mortgage, and the lender will still check your credit score, eligibility, and affordability. The biggest issue will be affordability, since the previous mortgage featured two salaries instead of one. However, the process can be relatively straightforward, provided you tick all the boxes.
  • Using Personal Savings – Buying someone out of a house can be an excellent way to invest your savings because you’ll become the sole owner of the property.
  • Take Out A Loan – You can take out a secure or unsecured loan to finance a mortgage buyout, but you must ensure you can afford mortgage repayments and the additional loan repayments.

Are There Other Options for Buying Someone Out of a House?


Other options available to you include:

  • Selling the property and sharing proceeds – You can sell the property, repay any outstanding mortgage debt, and share the remaining balance. This option will require you to find a new property to live in, and you can use the proceeds from the sale as a deposit for a new home.
  • Maintaining joint ownership – Maintaining joint ownership can be a suitable option if you’re on good terms with the other party or there are kids involved. You can keep the current arrangement instead of selling the property, but you’ll have cash tied up in the home and will have to share all the costs involved.

What Costs Are Involved in a Mortgage Buyout?

You’ll need to factor in some costs when buying someone out of a house, including:

Penalty Fees

You may need to consider an early repayment charge (ERC) penalty fee when exiting a mortgage to buy someone out of a house.

The penalty can vary between lenders and is usually a percentage of the outstanding mortgage balance.

You can check your mortgage contract or contact your lender to determine how much you’ll pay.

Solicitor and Land Registry Fees

You’ll need a solicitor to complete the necessary paperwork and register the change in ownership at the Land Registry.

The precise fees for the solicitor and land registry can vary depending on the solicitor and the value of your property.

Stamp Duty

Depending on your circumstances, you may need to pay stamp duty when buying someone out of a house.

If you’re dissolving a civil partnership or are married and divorcing, you may not need to pay stamp duty.

However, if you own a house together as an unmarried couple and are separating, you’ll have to pay stamp duty when buying out the other partner if the buyout is above the £250,000 threshold.

How To Calculate Buying Someone Out of a House Final Thoughts

Navigating the mortgage buyout process alone can be overwhelming, especially if you’re also dealing with a divorce or separating from someone you don’t get along with.

You can make things easier by consulting an independent mortgage advisor or broker who can support you and guide you through the process.

Call us today on 01925 906 210 or contact us to speak to one of our friendly advisors.

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