what pitfalls if I buy half a house

ashdale1234

My girlfriend and her separated husband are trying to sell their family house. He's living in the family house at the moment but the kids have grown up and moved away. She's currently renting a flat but that lease comes to an end soon. With her half of the house sale she wants to buy her own flat and the husband will move away somewhere else with his half of the proceeds. The house mortage is fully paid off.

However, the house is not moving on the market. What are the pitfalls if I buy the husband's half of the house? I can liquidate some investments with minimal tax liability, according to my financial advisor, enough to reach £250K, which is just about half the house value.

I know the biggest question is, if girlfriend and I fall out and it's permanent, do I get back the money I put in or just the corresponding proportion of the house value at that future time? Clearly, I'd need a solicitor to draw a scheme but what thoughts do you guys have? What other problems could there be?

Thanks in advance for your replies.

hazyjo

What do you want to do with the house? Live there together? Rent it out? Sell it? Sorry, just a tad confused about that...

If she wants to buy her own flat, I'm guessing you weren't anticipating moving in/buying together?

Jx

StuC75

Does the GF actually want to enter into that kind of commitment with you, is that something you want to enter into? If the GF wants to buy her own flat, maybe thats the independence that she's wanting after all this..

Have they actually divorced yet? have all those financial aspects been resolved?

If its not moving on the market at the current price, is that anything like the price level you want to buy in at? If not then the only person your doing a favour for is the Husband - since he gets out with his money, and your facing a straight loss position on your investment.

In your position Id stay out of this scenario - let them sort out there financial matters and support the gf in what she may want to do..

Fire_Fox

If the house is not shifting that indicates it is overpriced and/ or badly marketed. Are you sure that is the house value based on sold prices rather than for sale prices? You can buy a percentage or buy £££ value, up to you two. Pitfalls: what if it doesn't sell or the property is not worth what you hope or you can't agree to sell or can't agree on a sale price?

Richard_Webster

If you jointly own the house then both signatures are needed to sell it in the future.

Having an agreement is better than not having one but it does not magically force instant signature of documents necessary to effect a sale.

ashdale1234

Our ideal plan is for a country pad (where I live, KT23) and a town pad (a place for her in TW11). We've discussed living together but she doesn't want to be "stranded out here in the country", and I don't want to be permanently "in town". As it is we're only a half hour's drive from each other and it's pretty convenient.

The GF wants some measure of independence (that was the problem with hubby-no, they're not divorced yet; she's been separated, and with me, for eight years) and I guess I do as well. She has tiny grandkids who want to occupy much of her time and her own pad would be ideal for this "family time".

We all thought the house would sell quickly as it's near a desirable school. It's having an "open house" day this weekend as a last resort with a third estate agent. The previous two agents were full of confidence but nothing materialised. A common problem these days, I'm sure.

Her children would love me to buy half the house but I know they're thinking only of themselves and the grandkids! I don't mind investing in property but don't know if half a house is a good way, hence the original question.

For instance, I'd have the extra burden of maintenance (on top of my own house!) unless I could negotiate my way out of some of it.......

Fire_Fox

docjohn wrote: »

We all thought the house would sell quickly as it's near a desirable school. It's having an "open house" day this weekend as a last resort with a third estate agent. The previous two agents were full of confidence but nothing materialised. A common problem these days, I'm sure.

It will sell quickly when the price is right, houses being overpriced is indeed a common problem because no homeowner wants to lose money. Have you researched sold prices in the area?