Remortgage to buy out my sister

AnotherJoe · 17 February 2017 at 12:57PM

Wow, what a [STRIKE] weasel[/STRIKE]brother you are. She's been paying you 20% though getting no benefit whilst you had the house to yourself (plus presumably she's paying rent elsewhere) and you want to grab all the equity or push it off into some longer term unknown date which might be The First of Never.

Pay her half the equity calculated from the £135k value, if that's what you agree on, plus her deposit Take off half your costs for buying out of that if you share a solicitor. If you dont agree on £135k, get 2 more valuations and average all three.

were · 17 February 2017 at 1:08PM

Jameswild89 wrote: »

thanks for the reply,

But surely the house valuation is a valuation if it is sold, just because somebody says the house is worth £135,000 doesn't mean it would sell for £135,000?

The equity we have in the house together is only £8,100

To be fair there are two ways to do it ... fairly

1) Sell the house and give her half, then as per your argument the house has sold and is no longer a valuation.

2) Pay back deposit and give her 5K

Be grateful that she helped you buy it, and they you were both able to get a mortgage, which possibly without each others contribution may not have happened.

Though, if i were pedantic, I do think she should have insisted you take in a lodger to cover her part, be pain the extra money rat is left over, rather than you now complaining she only put in 20% and let you have the run of the whole house.

An offer for you Jameswild89 less [STRIKE]generous[/STRIKE] than your sister, you only need to pay me 10% of my rental cost so I can live in may property without you being here

Razzmatazz · 17 February 2017 at 3:45PM

In my view, you do need to take the value of the house now and buy her out with her share of the increased equity of the house. Although you're not selling the house openly, why shouldn't she benefit from the increased value of the house as she's currently a joint owner.

However it would be reasonable to take cost of sale into account - if you both sold the house at 135k, then it would probably cost you around 2% in EA and solicitor fees. As such, personally I think it would be reasonable to knock this off the value before you split the equity from the increased value of the house.

So I think you'd pay her half the deposit, plus half the equity after cost of sale had been removed.