Being bought out

stalkah

Hi All,

Sorry if this has been asked to death but I did a quick search and couldn't find an answer.

I own a house with someone else, they live at the property and I don't. I'm now at a stage where I'd like to sell or for them to buy me out.

They would prefer just to buy me out but are worried about the process with the current mortgage company (RBS) would they need to go through credit checks and applications etc? Or can they just provide proof of earnings and show they can afford it? Their salary alone is now more than our combined salary when we applied for the mortgage.

Any help/advice is appreciated

Foxy-Stoat_3

Once you have agreed the equity and what the property is worth now, the other owner needs to see the lender and they need to agree a new mortgage offer and pass their affordability criteria and, I assume, pull equity out of the property to pay you. Once they agree they can take on the mortgage on their own and agree the equity release you both need to sign a Transfer of Equity form and instruct solicitors to handle the legal side of it. If the lender thinks they can afford it on their own then it shouldn't be an issue.

You may need a solicitor as well to protect your interests as the solicitor won't work for both of you.

Mortgage fees may be £100-£200 and legals will be £600-£800 each.

Shouldn't take longer than 6-8 weeks to complete.