Help with remortgaging needed please.

coid12

Hi, yeah a slightly complicated one......

Me and a friend bought a house for £66,000. We were lent a 15% deposit (£9,900, but lets say £5,000 each for arguments sake) by my friends dad to help start us on a project of doing the house up. Anyhow due to my friend and ours differing circumstances we are now in the position where i am trying to remortgage on my own, and he is going to rent or buy with his GF.
The house is nearly complete and should be worth, lets say £90,000 when done. If so we would have made £12,000 each right?? I would like mine kept as equity in the property but my friend would like his £12,000 out of the property and his dad would like my £5,000 deposit back.

Does anyone know how i would go about this? Would i have to borrow £17,000 on top of a new remortgaged value mortgage rate? How much would i have to borrow? I'm a tad confused!!

Any help would be greatly appreciated. Thanks.

lee111s

How much is outstanding on the mortgage?

If the house is worth £90k you could technically remortgage for £81k (90% LTV morgage). You would use that money to pay off the existing mortgage.

For arguments sake, let's say the outstanding mortagage is £50k. You would have a surplus of £31k from the new mortgage. You would then pay your friend and his father back from that money.

All figures are just examples but hopefully you get what I'm saying

DandelionPatrol

You need to be crystal clear about how much you spent.

As I read it, the 15% from friend's father is on top of the 66,000, so you have actually only made 14,000, so you only need to pay the friend 7,000

But if you are saying the house cost 55,000 to buy and then you spent a further 10,000 loan from friend’s father, then your arithmetic is correct.

coid12

Ok thanks for the help so far.....

We have only had the mortgage 18 month so there is £53,000 still to pay on the mortgage.

'For arguments sake, let's say the outstanding mortagage is £50k. You would have a surplus of £31k from the new mortgage. You would then pay your friend and his father back from that money.'

Would this meanthe remainder/my profit would be taken off the amount is was going to borrow?

'As I read it, the 15% from friend's father is on top of the 66,000, so you have actually only made 14,000, so you only need to pay the friend 7,000'

The house cost £66,000, the £10,000 we borrowed of my friends dad was used as a deposit so we got a mortgage for £56,000.

libf

coid12 wrote: »

Ok thanks for the help so far.....

We have only had the mortgage 18 month so there is £53,000 still to pay on the mortgage.

'For arguments sake, let's say the outstanding mortagage is £50k. You would have a surplus of £31k from the new mortgage. You would then pay your friend and his father back from that money.'

Would this meanthe remainder/my profit would be taken off the amount is was going to borrow?

'As I read it, the 15% from friend's father is on top of the 66,000, so you have actually only made 14,000, so you only need to pay the friend 7,000'

The house cost £66,000, the £10,000 we borrowed of my friends dad was used as a deposit so we got a mortgage for £56,000.

And how much have you each spent on the renovation?

coid12

We will have spent £4,000 each on renovation. We had this money saved up and kept it seperate. It was more of a little project to see if we could do it.