ChatterBank1 min ago
tennants in common / buying out flatmate
Please can someone help, I have bought a place with an ex-friend of mine 2 years ago and I am now considering buying her out as our relationship has broken down. I would like to know what i would need to pay her if i was to do this. We both paid 50% share of the deposit and both pay an equal share of the mortgage each month. Would she get her deposit back? Would she get 50% back of what she's paid soo far on the mortgage and would she get 50% of the new value of the house? How would i get the ball rolling in this? Please please help. Thank you
Answers
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For more on marking an answer as the "Best Answer", please visit our FAQ.Hi confused, it's quite simple to buy her out provided you fit the the required profile for a lender, eg you have enough income etc. In short she is entitled to 50% of the available equity. Example, current property value �100K, original price (or outstanding mortgage) �80k, there is �20,000 equity, she is entitled to �10,000. If you need any more help or a quote contact me through website and ask for Pete
Good luck
On what you've given me (remembering you'll incur charges of between 1 to 2 thousand on the remo) you would have to give her approx �15,000 (half of �30K)
To get a remortgage on �143,000 would require a minimum salary of about �35k a year unless you are self employed and want to do a self cert mortgage, then you would declare about �40k.
The lenders also do a credit check. If you have had some problems in the past you can only lend 85% of the value of the property which equates to �136,000, which may cause you some problems, I may be able to find someone to go to 90% (releasing �144,000) provided the property is not a flat.
If you are still on speaking terms it might be an idea to explain this to her or even let her read this email.
This is a generalised view and not accurate to individual circumstances but I hope this helps
Pete
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