Questions about leaving a joint mortgage, for I am a bit thick

DaFlump

So earlier on were you saying he was cheeky cos he'd be expecting £100k to be bought out, or I was cheeky as in I would be lowballing by offering £100k? How has this now become £162,500?

Disclaimer: That's probably a 'thick' question but I'm genuinely not getting it.

ACG

They are based on 2 different figures. One is based on the equity and the other on the value.

If he wants £100k from the equity is being cheeky, if you want to pay it £100k from the value, you are being cheeky.

DaFlump

Ah, I see! Thank you!

CKhalvashi

If you sell for £325k, you'd get about £90k each.

If you sell his half for £325k divided by 2, that's £162.5k, he'll get £90k of that and the rest will pay his share of the mortgage (as in the other £72.5k)

You have £162.5k more assets and £162.5k more debt, so you're in the same net position, with the exception of higher (around double) mortgage payments and the whole (again, double) equity gained being yours. You take on double the risk for double the reward.

Sorry if that makes no sense (I'm tired), but hope it does.

Pixie5740

What kind of decorating adds £25k to th value of a property? Nicely decorated homes tend to sell quicker than not so nicely decorated homes but they don't really sell for more. Even ripping out an avocado bath suite and replacing it with a white one wouldn't increase the price by £25k.

DaFlump

I agree, I don't see it adding that kind of value either. I wasn't in when the estate agent came round and said all this guff.

DaFlump

But since you asked…

Finish off a kitchen that was 70% refurbished
Finish off upstairs bathroom that was 80% refurbished
Plaster & paint dining room
Tiled flooring through kitchen and dining room
Complete refit of downstairs bathroom
New carpets to hallway, stairs, landing, spare room, and my room
Re-wallpaper my room
Paint a few ceilings
Fill in the disused pond and tidy up our grass front and back
Rip down rickety wooden gazebo type thing and replace with a new, stable one


I’m not convinced it’ll add value. As a photographer however, I fully accept the photos will benefit from all this stuff being done.

Pixie5740

Maybe get another two estate agents round and take an average. How does the EA valuation compare with recent sold prices for similar properties in the area?

If you're getting a mortgage on your own then it's likely the lender will want a valuation carried out so you could use that as your basis. It's just that EA have a tendency to over egg the valuation in order to try and win business.

jennifernil

DaFlump wrote: »

But since you asked…

Finish off a kitchen that was 70% refurbished
Finish off upstairs bathroom that was 80% refurbished
Plaster & paint dining room
Tiled flooring through kitchen and dining room
Complete refit of downstairs bathroom
New carpets to hallway, stairs, landing, spare room, and my room
Re-wallpaper my room
Paint a few ceilings
Fill in the disused pond and tidy up our grass front and back
Rip down rickety wooden gazebo type thing and replace with a new, stable one


I’m not convinced it’ll add value. As a photographer however, I fully accept the photos will benefit from all this stuff being done.

I would say that is rather more than "redecoration"!

DaFlump

It's boring to talk about. It wasn't the point of my thread, so I just breezed over it by lumping it all in under the term redecorating. ¯\_(ツ)_/¯