Buying out a parent?

chrislee765

Hello,
This is an odd situation in which im looking for some advice.

I am 20, my sister 18. We still live at home and will do for another 5yrs. My mum is splitting up with her partner whom owns part of our house. Me and my sister want to buy him out.

As it stands in (000)

House is worth £360
They have a Mortgage of £80
Mum put in £170 from her property
Partner put in £80 from his property

So £360 take off the mortgage leaves £280
Take out his £80 leaves £200
Take out mums £170 leaves £30 - Which is £15 each.

So mum has £185 and we need to raise £175. Depending on what proportion we paid would depend on our share. In 5years time we would sell and then seperate.

Could anyone shed any light on the situation. Would we have to pay stamp duty, would we get seperate mortgages? etc

Thanks in advance for your help.

Gorgeous_George

I think stamp duty would be payable.

I don't think any mortgage lender would entertain separate motrgages. One property, one mortgage.

In 5 years' time, assuming the property is now worth £260K, how would you share the loss?



GG

chrislee765

GG, you think that house prices are going to fall approx 30% in 5 years?

doitmyself

Poor old ex partner must be worth at least his original stake back surely. If they put in a combined 250 equity of which his share was 32% and then shared equally the additional 80 mortgage and the house is now worth 360 (i.e.+9%) then his share should be nearer 115 ? If you can buy him out for 30 then that should go some way to taking care of any house price drop over the next 5 years!

Gorgeous_George

chrislee765 wrote: »

GG, you think that house prices are going to fall approx 30% in 5 years?

I think that they could. It wouldn't be the first time.

They could fall by more, or by less, or even go up.

That's if they don't stay the same.



GG

Gorgeous_George

doitmyself wrote: »

Poor old ex partner must be worth at least his original stake back surely. If they put in a combined 250 equity of which his share was 32% and then shared equally the additional 80 mortgage and the house is now worth 360 (i.e.+9%) then his share should be nearer 115 ? If you can buy him out for 30 then that should go some way to taking care of any house price drop over the next 5 years!

I think you misread the original post. I read it that the ex was getting £15K - half of the profit.

Not sure who is paying the legal fees etc.



GG