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Transfer of equity help -how does it work?
lblizard
Posts: 12 Forumite
Hi.
My partner is 20 years older than me and is very protective of the equity etc he has made moving up the property ladder, esp. as been through divorce and wife took a lot.
Anyway - we have agreed that my name will go on the deeds (not mortagage).
He wants it to work so that if say mortgage is £700 a month i decide what i can afford to pay towards it - say 25%. then i can own 25% of house.
However he is paying an interest only mortgage of £160,000 and we think the house is now worth £260,000 (bought for £190,000).
If we split what would i be entitled too? Someone said something about having to get the house valued, and work it out if had to get a mortgage today for £260,000 then i would only be entitled to an enquity made over and above this, rather than the £190,000 that was originally paid for. Is this true?
What are the rules? Questions we need to need answers to in order to transfer this equity?
I am only 26 and never owned a home before - i am totally in the dark and would appreciate any advice.
My partner is 20 years older than me and is very protective of the equity etc he has made moving up the property ladder, esp. as been through divorce and wife took a lot.
Anyway - we have agreed that my name will go on the deeds (not mortagage).
He wants it to work so that if say mortgage is £700 a month i decide what i can afford to pay towards it - say 25%. then i can own 25% of house.
However he is paying an interest only mortgage of £160,000 and we think the house is now worth £260,000 (bought for £190,000).
If we split what would i be entitled too? Someone said something about having to get the house valued, and work it out if had to get a mortgage today for £260,000 then i would only be entitled to an enquity made over and above this, rather than the £190,000 that was originally paid for. Is this true?
What are the rules? Questions we need to need answers to in order to transfer this equity?
I am only 26 and never owned a home before - i am totally in the dark and would appreciate any advice.
0
Comments
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A better thing would be for him to make the house shared as "Tenants in Common" with an agreed percentage of the house allocated to each of you. It costs very little and can be done with a solicitor. The amount could always be varies in the future as and when circumstances change."Some say the cup is half empty, while others say it is half full. However, this is skirting around the issue. The real problem is that the cup is too big."0
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I will look into this but i still don't knwo what % of equity I would get - that which is over the buying price of £190k or over £260K as current value?0
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The amount of equity in a house is the amount that is left after it is sold and the existing mortgage is paid off. So I presume if it was agreed that you owned x% of the house, you would get x% of the cash that was left.
But a solicitor - or possibly the CAB? - will be able to tell you the best way to protect both your interests.0 -
Thanks for all your advice adn help - off to the solictiors next week to get it all sorted.0
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