What should I offer to buy housemate out??

boyse7en

Me and my girlfriend had a similar situation 15 or so years ago. She owned a house with her sister, her sister wanted to move in with her partner and I wanted to move in - so that was OK.

We (GF and I) went and found out that the value of house minus selling costs minus outstanding mortgage = about £2k so we offered her that. She didn't like it as that was £2k less than her deposit had been a couple of years before.

After a month or so of 'negotiating' (read: arguing back and forth) we paid her the £4k as we liked the house and didn't want the hassle of moving (where we would have all lost money)

If your BF's mate is not keen to move out then you may have to make it 'worth his while' to do so - which will be somewhere between the £0 he'd get by selling the whole property and the £2250 he paid in as deposit.

I know it is a bit late - but it would have been a good idea when the house was bought to draft out what would happen when one person wanted to change the arrangements.

PasturesNew

FirstTimeSaz wrote: »

That's not what it's like at all but thanks for jumping to such conclusions

That's OK. No charge.
I specialise.

FirstTimeSaz

boyse7en wrote: »

Me and my girlfriend had a similar situation 15 or so years ago. She owned a house with her sister, her sister wanted to move in with her partner and I wanted to move in - so that was OK.

We (GF and I) went and found out that the value of house minus selling costs minus outstanding mortgage = about £2k so we offered her that. She didn't like it as that was £2k less than her deposit had been a couple of years before.

After a month or so of 'negotiating' (read: arguing back and forth) we paid her the £4k as we liked the house and didn't want the hassle of moving (where we would have all lost money)

If your BF's mate is not keen to move out then you may have to make it 'worth his while' to do so - which will be somewhere between the £0 he'd get by selling the whole property and the £2250 he paid in as deposit.

I know it is a bit late - but it would have been a good idea when the house was bought to draft out what would happen when one person wanted to change the arrangements.

Yeah in hindsight it would have been easier if they'd had the declaration of trust drawn up.
I know we need to make it worth his while, just need to find out what that figure would be.
He didnt put anything into the deposit, it was 100% so we haven't got that issue. but he thinks he's going to come out of it with 10k which isn't going to happen in this market.

pinkshoes

An EAs "valuation" will probably be very different (higher) that what it would actually sell for, and given this guy isn't very clued up, he might not understand this, and will expect half of what the EA has valued it at. Are you willing to pay this?

Do you know what the EA valued it at?

When was it bought?

mlz1413

pinkshoes wrote: »

An EAs "valuation" will probably be very different (higher) that what it would actually sell for, and given this guy isn't very clued up, he might not understand this, and will expect half of what the EA has valued it at. Are you willing to pay this?

Do you know what the EA valued it at?

When was it bought?

This is a good point, I had 2 EA round to value my property for mortgage purposes and I thought the valuations were quite realisitic, although try and use indenpenants rather than chains.

FirstTimeSaz

pinkshoes wrote: »

An EAs "valuation" will probably be very different (higher) that what it would actually sell for, and given this guy isn't very clued up, he might not understand this, and will expect half of what the EA has valued it at. Are you willing to pay this?

Do you know what the EA valued it at?

When was it bought?

Erghhh, just wrote a long reply and for some reason it didnt work!!

My OH and I know that an EA's valuation will be higher than a banks remortgage valuation as they'll want to get you on their books. Obviously doesn't mean it will sell for that, and then you've got the fee's and moving costs to consider. He doesn't think like this though and he's not very good with money.

I'm not willing to pay half of the EA's valuation as i feel this would be too much. Obviously i want to pay as little as possibly but dont want to cause arguements and i want it to be worth his while.
We havent been told what the EA's told them, they havent even told us the EA's have been, I only know because i went home for my lunch and she was showing the EA round!

The house was bought sept 05 so we've just done 3 years

FirstTimeSaz

Just had a valuation done of £125k

So it looks like if we did buy him out, we'd have to stick with our current lender.

hmmmm

mlz1413

have you agreed a meeting with other couple yet?

Would it be better if they bought you & OH out? sounds like you could get a better mortgage deal starting afresh.

FirstTimeSaz

mlz1413 wrote: »

have you agreed a meeting with other couple yet?

Would it be better if they bought you & OH out? sounds like you could get a better mortgage deal starting afresh.

Hi

Yes we're having a meeting tonight so we can discuss what our options are.
If they could by my OH out that would be ideal then we could rent and save up a bigger deposit while the house prices come down.
Its just whether our current lender will allow them to take on OH's side on the mortgage in terms of affordbilty.

Not sure how they'd cope though when they're both clueless about finances.

:rolleyes:

mlz1413

Hope your meeting goes well, remember your what your there to discuss - you are not their Mum and are not there to tell them they're clueless about finances and how will they cope!