Raising capital to buy your partner out

Vinnyk2406

Hi All

I need some advice. 7 years ago I bought a house with my sister. I am due to be married at the end of the year and I am looking to move out and buy a property with my partner. My partner will be a 1st time buyer and will be the lead on the mortgage with me as a secondary contributor.

However I found myself in a bit of a pickle with my current house, my sister and her partner do not wish to sell the house and do not have the capital to buy me out of my share.

What options do I have ort hey have to try and raise the money to do this to?
Is this a common problem people face when they wish to end a jt mortgage?

Please help!!
Vinny

xylophone

What formal agreement was made with your sister when the house was purchased?

There is information here about an order for sale.

https://www.wrighthassall.co.uk/knowledge/legal-articles/2014/01/21/orders-sale-property-joint-ownership/

AnotherJoe

Yep it is common and you have another issue you may not have thought of, this will be a second purchase so there will be an extra 3% SDLT for you to pay.

If your sister and her partner "do not wish" to sell the property, then ultimately the answer is to go to law and force a sale.

Hopefully you'll be able to convince them that you need to sell, its not a whim, and so they will need to buy you out. If they simply say no, then other than you stopping paying your part of the mortgage, or going legal, I dont see what your other options are.

When you bought there should have been an agreement between you and your sister as to what would happen would one wish to sell.Is there such an agreement and have you brought that up? This is after all a very forseeable situation.

BTW this should be strictly between you and sister nothing to do with her partner

foxy-stoat

You could ask your sister to pay you rent on your room until she and her partner are in a position to take over the mortgage and buy your half and move out, or get a lodger in and you collect the rent.


Forcing a sale would put your relationship on bad ground as well as costing you many pounds although you may find that you pay more on stamp duty due to the second property.


Do you need the money out of the current house or are you happy to wait for their finances to improve - have they given you timescales as this could drag on for years.

AnotherJoe

foxy-stoat wrote: »

You could ask your sister to pay you rent on your room until she and her partner are in a position to take over the mortgage and buy your half and move out, or get a lodger in and you collect the rent.

That's not going to help with extra SDLT or even OPs odds of getting a mortgage in the first place.

OP needs to sit down with sister, explain the consequences to him of her refusal, and ask for a date by which she is prepared to sell and move out. And if she still isn't, well stuff the "bad relationship" she's already there anyway.

lewishardwick

Would you and your fiancee be happy living in the house? How about offering to buy her half, thus releasing equity for her to purchase her own home?