buying half a property

The_White_Horse

i have two friends that own a flat. one wants to move out as circumstances have changed (marriage). the other one can't really afford to stay in the flat by himself or even with a renter - as the first guy has been subsidising him/ paying bills etc.

if i wanted to (and the other guy agreed to) buy out the second friend, how would that work in reality?

i reckon the paid around 150k for the flat. it is probably worth 170k now. so i would give the second guy 85k for his share. But how does it all work with mortgages? also, would i have to pay any stamp duty on my half or does that not come into it? cheers.

TWH

Gary123456790

Sounds very complicated... do they jointly own the flat and have they been paying the mortgage 50/50?

If the mortgage has not been paid evenly it will be difficult to work out what share each one owns.

Easiest way to find out about the mortgage is for one of them to call their current mortgage company and find out about taking one person off and replacing with another - the mortgage company will likely require this to be changed on the deeds first but could give you an idea if its possible.

If they are part way through an agreed term (e.g. a fixed rate) then there may be charges involved.

Gary.

Conrad

Ok you can join and existing mortgage to buy the old party out if the existing lenders terms allow such, or you can ask the remaining party to remortgage to a new lender and add you on.

If this is a residential mortgage then you need to state on the application you intend living there. This will then throw up questions about whats happening to your current resi mortgage. Some lenders will pretty much ignore the current mortgage if you state you intend to let it out and the new rent is sufficient.

If on the other hand the new property is to be let out, then you need to apply for a joint B2L mortgage.

This is a very basic summary only.

There is no such thing as buying halve a property, you will be joint and severably liable. The reason for this is a lender cannot repossess half a house so you will in thier eyes be owning all of the property but on susequent sales splitting the proceeds.

Personally speaking I think there are better ways to make money from property mate. I cannot see what 'your angle' is here and the existing owner from what you say is not great with money?

You will I think be liable for stamp duty as you are aquiring a property assett, whichever way you cut it.