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Splitting up - Selling half of house to friend
hotnuts21
Posts: 57 Forumite
Me and my Ex own a house between us, she now wants the cash from the house and is happy for me or someone else to buy her out if we dont sell it.
I have a friend who is a local businessman and he might be interested in partial ownership, as is my brother but he can only pay towards a mortgage not raise a lump sum.
What I am wondering is if we could 'sell' a % of the house to our friend for a lump sum. Which would cover buying my ex out.
Here is the situation at the moment.
House Value 150k
Mortgage remaining 120k
The house is in both our names with a 50/50 ownership.
What I propose is selling 20% of the house to our friend for £30k.
Giving my Ex 15k (half the value of the equity in the house)
Put £15k towards joint debt and paying off some house improvements.
Taking on the mortgage myself with my brother.
Setting up a 'deed of trust' which outlines my and my Bro own 40% each and are responsible for mortgage and my friend owns 20% and him not expected to pay towards mortgage, but would 20% of any sale value.
Would this work, and have I done my maths right?
The only problem I see is that the mortgage company will then be if value drops then friend might not get his 30K back?
Any thoughts, I know its possible to have multiple house owners, but I cant find any clear examples of how this could work.
Thanks
Paul
I have a friend who is a local businessman and he might be interested in partial ownership, as is my brother but he can only pay towards a mortgage not raise a lump sum.
What I am wondering is if we could 'sell' a % of the house to our friend for a lump sum. Which would cover buying my ex out.
Here is the situation at the moment.
House Value 150k
Mortgage remaining 120k
The house is in both our names with a 50/50 ownership.
What I propose is selling 20% of the house to our friend for £30k.
Giving my Ex 15k (half the value of the equity in the house)
Put £15k towards joint debt and paying off some house improvements.
Taking on the mortgage myself with my brother.
Setting up a 'deed of trust' which outlines my and my Bro own 40% each and are responsible for mortgage and my friend owns 20% and him not expected to pay towards mortgage, but would 20% of any sale value.
Would this work, and have I done my maths right?
The only problem I see is that the mortgage company will then be if value drops then friend might not get his 30K back?
Any thoughts, I know its possible to have multiple house owners, but I cant find any clear examples of how this could work.
Thanks
Paul
0
Comments
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You could come up with all sorts of complicated scenarios, most of which would bring more misery in the future than a clean break and a share of the equity would give you now.0
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Anyone named on the deeds as an owner will have to be party to the mortgage. That means joint and several liability.
I wouldn't take on 100% of the liability for 20% of the property.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
You need to find someone to buy 100% of the house."You were only supposed to blow the bl**dy doors off!!"0
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Me and my Ex own a house between us, she now wants the cash from the house and is happy for me or someone else to buy her out if we dont sell it.
I have a friend who is a local businessman and he might be interested in partial ownership, as is my brother but he can only pay towards a mortgage not raise a lump sum.
What I am wondering is if we could 'sell' a % of the house to our friend for a lump sum. Which would cover buying my ex out.
Here is the situation at the moment.
House Value 150k
Mortgage remaining 120k
The house is in both our names with a 50/50 ownership.
What I propose is selling 20% of the house to our friend for £30k.
Giving my Ex 15k (half the value of the equity in the house)
Put £15k towards joint debt and paying off some house improvements.
Taking on the mortgage myself with my brother.
Setting up a 'deed of trust' which outlines my and my Bro own 40% each and are responsible for mortgage and my friend owns 20% and him not expected to pay towards mortgage, but would 20% of any sale value.
Would this work, and have I done my maths right?
The only problem I see is that the mortgage company will then be if value drops then friend might not get his 30K back?
Any thoughts, I know its possible to have multiple house owners, but I cant find any clear examples of how this could work.
Thanks
Paul
What rent would you be paying the investor on his 20%?No reliance should be placed on the above! Absolutely none, do you hear?0
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