Valuation - deed of trust

db281

Hello

I'm a 'buying into' my partner's property that we both live in, by being added to the mortgage and giving my partner a lump sum of money. We'll both be signing a deed of trust that details the amount of unequal amounts of equity we both have in the property. And any future increase/decreased of equity will be shared equally.

As my partner has owned the property for several years, any increase in equity since he has bought it is his (obviously!). So, I'll be buying into the property at 'today's price'. This means his amount of equity on the deed of trust will be 'decided' by the person who values the property.

My question is, who's best to get the property valued with, in terms of an estate agent or two, or a chartered surveyor? For the most realistic figure.

I worry that an estate agent valuation could be way out, meaning that based on a deed of trust, negative equity for myself could be possible. Properties price were we live vary greatly, due to properties themselves being different from house to house.

Tom99

You can pay for an RICS valuation if you want but what is more important is that you both agree the figure you arrive at is fair.
Are you going to pay the mortgage 50/50? If so your deed of trust might say something like this:

On the sale of the property and after deducting the sale costs and redeeming the mortgage the balance shall be split:

Party A - x% of the gross sale price less costs of sale
Party B - y% of the gross sale price less costs of sale
The remainder - 50%/50% to Party A & B

silvercar

Equal payments of the mortgage going forward and equal payments of maintenance?

db281

That's right:

- Equal mortgage and maintenance payments
- Any increase/decrease in equity to be split equally 50/50.

getmore4less

If you are not buying 1/2 the current equity you need to review that so you both understand what you are agreeing.

unless unusual it is not hard to get a decent value from sold prices on right move and asking prices of stuff SSTC.

The important thing is you both agree the starting value for your calculations.