Selling a shared house thats in negatvie equity

andy.m_2

many here are giving the OP two bites at the cherry.
The OP put up £50k, so gets a 61:39 split in his favour, be that profit or loss.

OR

The OP pulls out his 50 and then they split 50/50

OddballJamie

Is renting the property out to cover the mortgage repayments not an option? Hopefully there will become a level that you can sell and break even after paying off the mortgage.

ValHaller

andy.m wrote: »

many here are giving the OP two bites at the cherry.
The OP put up £50k, so gets a 61:39 split in his favour, be that profit or loss.

OR

The OP pulls out his 50 and then they split 50/50

I don't think 'many' are doing it. I am, but if you read post #29, in context with its quote and the flow of discussion, I am only suggesting that OP reminds his friend of the consequences of applying the 'you can have your £50,000 back first' approach - which OP has told us has fallen from the friends lips - as a reminder that £30,600 is not so bad.

ValHaller

InMyDreams wrote: »

I would disagree that the friend risked nothing. Friend is now saddled with a huge debt (£30,600) and absolutely nothing to show for it. OP should now have 100% of the house and once he uses the £30,600 to reduce the mortgage, is only in negative equity by £6,400. So yes, OP has lost more (£50K deposit + £6,400) but that's because he owned more of the house in the first place. Had prices risen (as he was expecting) he would have made more because he chose to invest more. (OP invested his own money plus some borrowed money. Friend only invested borrowed money, so more risky but the investment was less.)

Good points in the whole post. Just to flesh this one out, friend has a loss of £30,600, OP has a loss of £56,400. OP is in fact bearing 65% of the overall loss - friend is doing better because he is benefitting from the equity accumulated under the mortgage at 50% rather than 39%

Fire_Fox

Belfast79 wrote: »

ahh, like all people in negative equity we always thought the price of the house would go up. My friend had always said when we sold the house I would get my intial £50,000 back first.

But you didn't agree that, you could have had that written into your legal documentation (Deed of Trust) but you decided to do an unequal split instead. So what your friend said is irrelevant, your £50K was converted to a percentage share.