Buying out my mate

welshguy1234

hi there im very new to this forum but hopefully u cant help me..
i bought a property with a mate 18 months ago on 100% interest only mortgage for a property of £103,000.
we both been living in the property and have been paying 50% each on the mortgage and bills..
now im looking to buy my mate out and he's willing to hear a offer from me but im struggling to come up with a figure for him because our property is only worth about £93,000 now.
Because the property is in negative equity it not as easy as it would be in + equity. Any idea how much i can offer him? or how i work it out?

Caz3121

the house is worth £10k less that you bought it for so, in theory, if he wants be released then he should be giving you £5k (if it was sold on the open market you would both lose £5k each or possibly more)
You would also need to take a mortgage on your own which would require a deposit
probably of 10% + you need to clear the old mortgage so you probably need about £20k

Tamazapan

Nothing its called negitive equity if he wants to move on then he will have to sign the house over to you and walk over legally its worthless. so unless you come up with an amount to give him your stuck with him.

pawpurrs

Why dont you get three agents out and ask them what price they expect to achieve for it, for a quick sale, is there any comparable properties that have sold recently that you can compare it it. I should think it would be worth less than 93k now, I would imagine?

welshguy1234

hey thanks for the msgs... would it better for me just to stick it out? this isnt a problem didnt realize that if i change the name on the mortgage i would have to stump up the 10% on the 100% mortgage. would i be able to amend the paper work and give him a pay off? i was thinking in the region of £4000. i know the property i £10k down but i would own all of it and he would still live there and pay rent!

Robert_Sterling

I can't believe that you would pay your mate £4,000 for his share in the Negative Equity. Words fail me.