amicabal split

Clueless99

I want to buy out of a co-owned flat in negative equity. What is the normal way to settle fairly. I'm guessing I have to revalue the property and pay off my side of the liability but I believe that this can be off set against by my initial investment???

I'm sure that this is a common occurance. Can someone offer advice?

kingstreet

As you have joint and several liability for the mortgage and any negative equity you are likely to be released from the contract only if you repay the whole of the negative equity and the other owner is in a position to take on the whole mortgage in their own right.

Unfortunately, there is no "my share, your share" approach possible.

Thrugelmir

Clueless99 wrote: »

I'm sure that this is a common occurance. Can someone offer advice?

Sell the property then both parties settle their respective shares of the negative equity.

If this not possible. Then both parties should contribute more to repaying the mortgage capital quicker. This taken with a medium term view. That in the future house prices will again edge upwards in value. Will eradicate the negative equity. Or at least bring it down to a manageable level.