How to get off the mortgage

mummyemmy

A friend bought a house with other friends a few years back and owns 10% of the house according the mortgage agreement.

Things have recently gone from bad to worse with the people she lives with and she desperately wants to get her name off the mortgage and leave. The house cost £250K and is worth pretty much the same now and I understand the mortgage on the property was £120Kish. I assume a fair percentage of this has been paid now so maybe £100K left to pay. Originally £100K was put down as a deposit by 1 member of the household, she didn't put any deposit down.

What I am looking for is some advice to pass on to her as to how she can get her name off the mortgage and what money she is entitled to if any and how does she get this if the others aren't in a position to "buy her out".

Any advice welcome - thanks

mummyemmy

Is anyone able to give any advice please?

orangeslimes

Probably she needs to speak to a solicitor?

Did they not set up any sort of agreement about what happens if someone wants to be bought out when they bought the place?

kingstreet

The parties to remain need to contact the lender who will vet them to see if they can afford the mortgage alone.

If they can and the lender agrees, the matter will be passed to a solicitor for a transfer of equity to be completed. This will have to be signed by all parties.

The usual cost is £450 to £600.

if she is expecting money from the deal, they will have to provide it from savings, or borrow more from somewhere. Additional borrowing from the mortgage lender may be possible, subject to status and affordability.

If none of this works, she would need to take legal action to create a forced sale.