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Can you help? Co-ownership of property query!!
IrisMurdoch
Posts: 4 Newbie
Hello, this is my first post. If anyone can help, I'd be very grateful.
I'm considering a co-ownership of a flat which would be my primary residence and I would be responsible for the mortgage, but a second party would put up a deposit (a quarter of the property value).
Obviously we will go to a solicitor to work this out, but I wondered if anyone might know the kind of deal we might be able to work out in terms of who owns what percentage of the flat. Could I hope for ownership of half the flat?
The second party and I would wish to sell the flat after five years.
Many thanks in advance,
Iris.
I'm considering a co-ownership of a flat which would be my primary residence and I would be responsible for the mortgage, but a second party would put up a deposit (a quarter of the property value).
Obviously we will go to a solicitor to work this out, but I wondered if anyone might know the kind of deal we might be able to work out in terms of who owns what percentage of the flat. Could I hope for ownership of half the flat?
The second party and I would wish to sell the flat after five years.
Many thanks in advance,
Iris.
0
Comments
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its for you and the second party to agree how much you each own, the lawyer then documents it.My posts are just my opinions and are not offered as legal advice - though I consider them darn fine opinions none the less.:cool2:
My bad spelling...well I rush type these opinions on my own time, so sorry, but they are free.:o0 -
Thanks for your response, Timmy.
Do you know what might be a reasonable percentage split (or at least a good starting point in the negotiations)?
Obviously after five years I won't have contributed anything approaching the amount of the deposit paid by the other person ( although I will have looked after the property ) so does that mean I own less of a percentage?
And another question - if we are joint applicants, (it would be the other party's second mortgage) what are the capital gains implications upon selling the property? Obviously it's my primary residence so I wouldn't have to pay it.0 -
right, so you pay nothing, save for keeping up the mortgage.
his 25% and your exposure to a 75% mortgage enable you both to possibly make a long term profit.
after a week, if you sold, the second party would lose half the money he put it though.
I suggest that he gets his 25% (as a £ sum) and then you split any increase (To be decided).
50/50 seems ok. Are you both ok with that? However, you are giving 75% of the price though, and it matters not that you are getting the money from the mortgage, so why not 75% you and 25% them?My posts are just my opinions and are not offered as legal advice - though I consider them darn fine opinions none the less.:cool2:
My bad spelling...well I rush type these opinions on my own time, so sorry, but they are free.:o0 -
I am OK with 50/50.
Is a 75% mortgage difficult to come by at the moment?
Will he lose half his money in tax after five years too?
Thanks so much!0
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