Buying part ownership of property from another person

KayP

Hello

My mum died early last year leaving a mortgage-free house to me and my brother, 50/50. He has always lived in the property, and there was a clause in her will saying the house could not be sold for 2 years after her death so he could continue to live there for a while.

He now says he would like to remain in the house beyond the 2 year period, and we've discussed him buying my half from me. He wouldn't have the cash to do this outright, so am I right in saying we'd get a valuation then he'd get a mortgage in the usual way to buy my half from me? I'm guessing he wouldn't need any kind of cash deposit with it being 50% LTV?

The house is worth around £120k, so we're talking around £60k.

Many thanks
Kay

kingstreet

Yes. You'd need to find a way to agree on the value, then he applies for a remortgage to raise the money and the solicitor handling it does a transfer of equity to remove you from the deeds at the same time.

You get your money in return for your signature on the transfer forms.

The valuation you get at the outset isn't necessarily what the lender's surveyor will value you the property at during the remortgage process, so your 50% may end up less than expected.

KayP

Ooh interesting - thanks for the reply, really appreciate it.