Creative Financing Ideas?

So here is the situation. A friend is going through a split with his girlfriend. There are several challenges here.

1. She is asking for $80k. (With a time frame to be determined.)
2. She wants him to refinance the house so that it's in his name only.
3. He can't qualify to refi his house on his income alone.
4. He doesn't want to sell his house as he has put in a lot of time fixing it up, and even if he did sell it, he wouldn't be able to find something else in the area for under $300k.

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Here are some of the details:

- Original purchase price was $225k.

- The current mortgage is $175,000.

- The current market value is $450,000.

- She is asking for $80k and for him to refi the property so that the property is in his name only.

- There isn't a time frame on how much money she wants and by when. He thinks she'd be open to getting $20k within the next few months and the rest over the next 6-12 months.

- He makes $52k a year. The bank is only willing to do a refi in his name only at a 40% loan-to-income ratio. Which, according to the bank would mean that he can't qualify for a refi of the principal amount of $175k--that he'd only be able to qualify for a new mortgage of $125k.

- The bank preapproved him for a personal loan of $60k.

- He has $20k cash in savings.

- He has been remodeling our home for the past year, and we currently pay him around $12k a month. We are willing to prepay or otherwise loan him $30k.

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It seems to me that since he has so much equity, he could take the $20k cash and the $30k we could prepay him so that he could pay down the principal on his mortgage to where he would qualify for a refinance. Once he gets the refi, he could then apply for a home equity line of credit to pull out the $80k needed to pay his ex.

Any other ideas on how to help him keep his house, refi it into his name, and pay her off?