Buying someone out of a mortgage help 18 September 2018 at 5:32PM in Mortgage-free wannabe 2 replies 437 views

Jayjay2018

So basically my wife bought a house with her sister 15 years ago

I moved in 13 years ago and she moved out. Since then I have been covering the mortgage.

How would we calculate a buy out amount. I assume the initial deposit back and the 2 years of payments? And a token gesture .

Or would it go on the original purchase price and what it's worth of and then splitting the difference 50/50.


Many thanks
Jay

MovingForwards

What did they agree between them when they purchased the property?

If no agreement then you have:

1. Value from 13 years ago, less amount of equity paid (not a lot as it would be front loaded with interest) ÷ 2 = amount due to SIL (or the same + 50% of rental cost over the 13 years due to SIL.)

2. Value from 2018, less equity (decent amount depending on mortgage term) ÷ 2 = 50% payable to SIL (or the same + 50% of rental cost over 13 years due to SIL)

It can be as easy or as difficult as you all make it.

Jayjay2018

Many thanks gives us something to go on. And nothing was ever agreed from when she moved out. And I have been paying it since. She has paid nothing towards it since moving out.