Some serious advice needed

lgardner

I need some mortgage financial advice if anyone on here can.

Basically my situation is myself and my sister took out a mortgage 3 years ago for £38k.

I am thinking of buying her out and moving in with my partner. We have had the property valued and it is valued at 90k.

Therefore if i was to buy her out she would be entitled to the following.

(90k - 36.5k (remaining mortgage)) divided by 2. Is this right.

Also my g/f is moving in and we are going to get a combined mortgage for 80k to cover the cost of paying my sister out and to get a new kitchen and bathroom etc etc.

But i was thinking and if i get a mortgage for 80k, then have i not just lost the profit i have made on the house as we are getting one together???

As if we remortgaged then sold immediately, i would need to pay off the 80k first leaving me with a 10k profit instead of around 27k.

I am thinking my profit is the 17k that i will have for home improvements.

toonfish

you are right, unless you need to deduct anything for a deposit you each put in 3 years ago. If you simply sold now you would have around £27K each.

lgardner

thanks, i want to keep the house on, and get a new kitchen and bathroom. But at the moment i could not afford to do that.

I wouldn't want to remortgage for 80k as it would eat into my equity, any ideas

inch_high

House worth 90k, you owe 36.5k = £53.5k equity. Therefore you need to refinance to pay the £36.5k and your sisters share of £27k - thats £63k.

What house valued at 90k needs £17k for a kitchen/bathroom? It cant be that big so wouldnt £10k be enough?

toonfish

you should be able to do kitchen and bathroom for £5K if you shop around (IKEA kitchens are fantastic for the money) - hence only need mortgage for £68,250

No other way really

silvercar

I would hope that spending £17k on a bathroom / kitchen would increase the value beyond 90k. Either it should then be worth £100k+ or it isn't worth 90k without a refit.