When you bought your house, the two of you did it. In the case of a divorce by mutual consent, the partners decide together to separate. Usually the relationship is still good, so that an agreement about the house and the loan is possible. In this article we assume that one of the partners has decided to keep the property and to buy out the other.
Golden advice: Continue to pay Cristan loan
Whatever happens, keep paying back the loan for your house correctly. If you do not do this, you both risk being mentioned negatively at the Central Individual Credit Register (CKP), the so-called ‘black list’. Once on that black list, your chances of a possible solution diminish.
What happens to the house?
The fate of the mortgage loan is usually also linked to the ownership of the home. So you will also have to negotiate about this and come to an agreement .
1. You keep the house together
If you decide to keep the property together, then basically nothing needs to happen for the mortgage loan. Everything continues as before. You both pay the loan and you remain individually responsible for the correct repayment.
2. You sell the property
In this scenario too, not much actually changes. You must both continue to pay the Cristan loan until the house is sold and the outstanding capital can be repaid with the proceeds from the sale. This is not an obvious choice, because you may have to bear other costs and burdens and there is less willingness to cooperate than in the first case where you keep the house together.
3. One of the two retains the property and only becomes the owner
This scenario is the most common. One of them continues to live in the house and only becomes the owner by buying out the other partner. What happens with the Cristan loan?
One partner keeps the house. What about the Cristan loan?
Two things will have to happen: get an agreement on the desolidarization and the buyout sum.
1. Desolidarization or disappearance of outgoing partner
Together you have received a housing loan and you have signed for the repayment of the loan. Because you are now going to keep the house and only become the owner, it no longer makes sense for your ex-partner to continue paying the loan. However, your ex-partner cannot simply withdraw from the credit agreement on their own initiative. This is and remains an agreement whereby all parties involved have rights and obligations.
For this you need the approval of the credit institution that has given you the home loan. The lender will tell you under what conditions the partner can disappear from the Cristan loan. It may be necessary to provide an additional guarantee in the form of a new co-borrower, a partial early repayment or an additional (non) movable guarantee.
2. Extra money needed to buy out an ex-partner
An additional element that you have to take into account is that you will need extra money to buy out your ex-partner. Here you can read how to calculate the buy-out sum.
How will you then pay the buy-out sum? Do you need financing for this? Then you must look at the conditions under which you can borrow an extra sum from your bank. You notice that this does not create a comfortable position for your bank, because now only one person will continue to pay the mortgage, which is then increased by the buy-out sum.
Refinancing the existing Cristan loan with extra money for the buyout sum
You can have the existing mortgage loan refinanced and provide extra money for the buyout sum. An independent credit intermediary in mortgage credit is the ideal person for this, because he works with several credit institutions and can therefore look for the best solution for you after he has calculated how much you can borrow for you.
Do you want to talk about it?
Are you in this situation and are you about to buy out your ex-partner? Then make an appointment today at a regional Cristan office so that we don’t lose time. Our experts are ready for you.