Moving out from tenant in common ownership

drumeo05

Hi everyone, first post here.


Just after a couple of pointers.


I am wanting to move out of the house I bought with my friend to my parents as a stop-gap come October when the 2 year fixed mortgage is up. I want to eventually buy my own place, with my girlfriend to move in (not buying with me though, just contributing). We bought the place with equal deposits and a 50/50 split. We've split the mortgage and all household bills 50/50 for the duration living here.


I know for a fact that my friend won't be able to afford to pay the mortgage by himself so two options have arisen: (potentially three but in my eyes only two):


- he has mentioned that he could buy me out with his sister coming on to the mortgage


or


- sell the place together and be done with it




My girlfriend is still living with her parents pretty close by and she isn't thinking about buying anywhere just yet. The idea is that I'd like to give it go living together as things are going great between us.


My friend hasn't decided exactly what he wants to do yet. But we have agreed that with the first option we'd get 3 valuations from different estate agents to come about a valuation of the property first. The main question is: will I need to get my own solicitor if he wants to buy me out with his sister?


If we go down the second option I'm pretty sure we'd just need to go jointly through one solicitor for legal bits and the conveyance if I'm correct as in this situation it's in both of our interests to get the best sale?


Thanks


Sam

Guest101

drumeo05 wrote: »

Hi everyone, first post here.


Just after a couple of pointers.


I am wanting to move out of the house I bought with my friend to my parents as a stop-gap come October when the 2 year fixed mortgage is up. I want to eventually buy my own place, with my girlfriend to move in (not buying with me though, just contributing). - to the mortgage? she will be entitled to a share of the property in that case. We bought the place with equal deposits and a 50/50 split. We've split the mortgage and all household bills 50/50 for the duration living here.


I know for a fact that my friend won't be able to afford to pay the mortgage by himself so two options have arisen: (potentially three but in my eyes only two):


- he has mentioned that he could buy me out with his sister coming on to the mortgage - Ok


or


- sell the place together and be done with it - ok




My girlfriend is still living with her parents pretty close by and she isn't thinking about buying anywhere just yet. The idea is that I'd like to give it go living together as things are going great between us. - Fair enough, you could rent?


My friend hasn't decided exactly what he wants to do yet. But we have agreed that with the first option we'd get 3 valuations from different estate agents to come about a valuation of the property first. - how is that relevant? the first option is to remortgage, so you valuation seems redundant. The main question is: will I need to get my own solicitor if he wants to buy me out with his sister? - yes, just to finalise the sale, shouldn't be expensive.


If we go down the second option I'm pretty sure we'd just need to go jointly through one solicitor for legal bits and the conveyance if I'm correct as in this situation it's in both of our interests to get the best sale? - solicitors do not get you the 'best sale'. just ensure its legal and you're protected.


Thanks


Sam

I'd be more concerned about forcing a sale than anything else.

drumeo05

Thanks for your quick response Guest101


Yeah, I understand that we may have to draw a cohabitation agreement up. My initial plan is to be able to afford the mortgage by myself though. I have also thought about renting with her instead. It could well be an option. It might work out simpler to just rent together and split all costs. Hhmmmm.


The valuation would have to be done to get a current market value though to work out what the net equity is? Or am I getting confused with this?


Ok, so independent solicitor it is for if he is buying me out. I get what you're saying that they don't get you the 'best sale'. I understand they have nothing to do with that but if we're selling together then there would be no need to get a solicitor for each of us anyway right?

Guest101

drumeo05 wrote: »

Thanks for your quick response Guest101


Yeah, I understand that we may have to draw a cohabitation agreement up. My initial plan is to be able to afford the mortgage by myself though. - google beneficial interest in property - just to give you a head up I have also thought about renting with her instead. It could well be an option. It might work out simpler to just rent together and split all costs. Hhmmmm. - Renting would give you a chance to sell, as it's time consuming.


The valuation would have to be done to get a current market value though to work out what the net equity is? Or am I getting confused with this? - it depends. the selling price and marketing price are often not aligned. so someone may feel as thought they've 'lost out'. The lenders valuation is often not the same too.


Ok, so independent solicitor it is for if he is buying me out. I get what you're saying that they don't get you the 'best sale'. I understand they have nothing to do with that but if we're selling together then there would be no need to get a solicitor for each of us anyway right?

correct. If you're selling it, you are selling jointly.


If remortgaging, the solicitor would look after your interest.

drumeo05

Ok thanks for the tip about the beneficial interest thing. I have the option of moving back into my parents for a bit so I have got time to think about whether I'd rent with my girlfriend first or go ahead and buy a place where I'm the sole owner (again, beneficial interest thing comes into that). I'm not counting on it but my parents may offer me to live there and pay less than what it would to rent somewhere if its only going to be a temporary thing so I could save a hell of a lot more and tidy up some debt I've accrued before I think about buying.

So to clarify, if my friend wanted to remortgage with his sister now on it as well I'd need my own solicitor to deal with the friend/sister buying me out?

Thanks