PLEASE READ BEFORE POSTING
Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Buying someone out.
jb1989
Posts: 23 Forumite
Hi!, always had great advice from here so figured I’d ask a question that I’ve been unsure of.
Myself and a friend purchased a new build flat roughly 2.5 years ago. We were both in a similar position and felt that the best way to get on the ‘property ladder’ was to buy together. We also purchased this flat with HelpToBuy. We always saw this as a fairly short term thing. We agreed to live together for at least 3 years and then to go our separate ways when the time came. My friend met a girl in the last year and a half and they are now debating the idea of buying a place together. Due to my job I am in a very good location and personally have no real reason to move. My circumstances have not changed and the original location was bought as it needed to be within walking distance of my job.
He has expressed the idea of us selling up in the not so distant future and I have mentioned the idea of me buying him out. My main question is how would we agree on a figure for me to buy him out and what are the main things we would have to do before doing so. Everything has been completely split down the middle. Possessions have been bought separately so that we can take what is rightfully ours but the mortgage/deposits and any money that has been used during the buying process has been completely 50/50.
I am in a position where I could afford the mortgage/bills on my own but it would leave me a lot tighter on money per month and would not be ideal so my plan would be to possibly rent out the second room which I am able to do despite HelpToBuy. I have also checked and HTB is transferrable to one person. We put down a deposit of £4000 each with HTB putting down £32,000.
Thanks in advance.
Myself and a friend purchased a new build flat roughly 2.5 years ago. We were both in a similar position and felt that the best way to get on the ‘property ladder’ was to buy together. We also purchased this flat with HelpToBuy. We always saw this as a fairly short term thing. We agreed to live together for at least 3 years and then to go our separate ways when the time came. My friend met a girl in the last year and a half and they are now debating the idea of buying a place together. Due to my job I am in a very good location and personally have no real reason to move. My circumstances have not changed and the original location was bought as it needed to be within walking distance of my job.
He has expressed the idea of us selling up in the not so distant future and I have mentioned the idea of me buying him out. My main question is how would we agree on a figure for me to buy him out and what are the main things we would have to do before doing so. Everything has been completely split down the middle. Possessions have been bought separately so that we can take what is rightfully ours but the mortgage/deposits and any money that has been used during the buying process has been completely 50/50.
I am in a position where I could afford the mortgage/bills on my own but it would leave me a lot tighter on money per month and would not be ideal so my plan would be to possibly rent out the second room which I am able to do despite HelpToBuy. I have also checked and HTB is transferrable to one person. We put down a deposit of £4000 each with HTB putting down £32,000.
Thanks in advance.
0
Comments
-
get a surveyor to do a valuation.0
-
Get a couple of estate agents in to do a valuation - its usually free as they want to do the sale.
in very simple terms - and not taking into account the HTB, deduct the outstanding mortgage amount from the valuation and half of the balance is what your friend is due from the property.
Approach your mortgage lender to see if they will loan you enough to cover the outstanding mortgage plus the sum due to your friend.0 -
I would take the estate agent valuation with a pinch of salt as they tend to over hype the price to get your business as a seller.
RICS qualified surveyors can give out more solid estimates but its generally not free.0
This discussion has been closed.
Categories
- All Categories
- 346K Banking & Borrowing
- 251.1K Reduce Debt & Boost Income
- 451.1K Spending & Discounts
- 238.1K Work, Benefits & Business
- 613.1K Mortgages, Homes & Bills
- 174.5K Life & Family
- 251.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards