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Advice needed! Sell out or Stay?
rjtho
Posts: 2 Newbie
I currently have a joint mortgage (60% LTV) with my brother for a two bedroom flat in zone 2 west London. We are going through a loft conversion set to finish by the end of the year and are expected to see an increase in property value that is double the expenditure of the cost after valuation (speculation from nearby flats).
Following this my brother wishes to buy me out of my share of the property (based on new valuation) so that he is sole owner (I am not in a financial situation to do the same). This can potentially give me a deposit for another property.
Is it wise to sell out to him later next year for my own two bedroom property or will keeping half of a 4 bedroom flat and rental income be a better option?
Following this my brother wishes to buy me out of my share of the property (based on new valuation) so that he is sole owner (I am not in a financial situation to do the same). This can potentially give me a deposit for another property.
Is it wise to sell out to him later next year for my own two bedroom property or will keeping half of a 4 bedroom flat and rental income be a better option?
0
Comments
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impossible to answer using only the info you have providedIs it wise to sell out to him later next year for my own two bedroom property or will keeping half of a 4 bedroom flat and rental income be a better option?
- where will you live if the flat is let and how will you fund living there?
- where will your brother live if the flat is let?
- will you take a lodger in your own 2 bed flat?
- capital growth of 2 bed versus capital growth + rental profit of 4 bed (x 50%) is pure speculation as we have no idea of locations and all the other factors that drive relative values0 -
Do you have any CGT exposure.0
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The plan would involve me buying my own flat and staying there as well as having a lodger, my brother would then have the 4 bed flat and would be renting out 2 rooms. With a deposit from selling I would be aiming for a flat near Hammersmith as well with a maximum value of 500k up to 70%ltv or less0
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