I am interested in buying 50% of a house from a friend who owns it outright. Is this legally possible?

Question

Are matters such as deeds very complicated to organise (I will have to get a mortgage for my share of the property)?
Thanks,
r

Answer 1

This sounds quite risky. Your first step needs to be a consultation with a real estate attorney. There's a few things you need to get put in writing before you buy this "half" of a house.

What happens if one party dies?

What happens when one party wants to sell?

Who pays what share of utilities? Repairs? If a major appliance breaks a week after you buy, do you split it halfway? Hardly fair to you if it's too soon after you take ownership.

If you're in the US, you'll want to make sure you take ownership as "tenants in common", and that your ownership percentage in the property is made fully clear. Also, who gets what share of future appreciation? Tenants in common means that if one of you dies, your ownership stake goes to whoever is in your will, NOT automatically to the other owner. Most married couples, for example, take ownership as "joint tenants", where one spouse automatically gets the other spouses interests in the property if one were to die. You do not want that for your situation.

You'll want to set up a "first refusal" type of deal, where if the other guy wants to sell, you have first rights to buy his half of the property, or have the ability to "approve" who buys it. And if they want to cash out, again you'd have first right to buy him out, and vice versa.

Start spending some money on a good attorney. You'll also need to create a will when you do this. But spending $1000 upfront can save you endless headaches later. Because it's guaranteed that some day, one of you will want out of this deal, either by choice or by demise. Make sure those steps are laid out before you close.

I'm also a little curious about whether you can get a bank to finance your "partial interest" in the property. That's another big factor. They would only lend on a full interest in the property, since they can't foreclose on 50% of a home. So that's another angle to discuss with your attorney.

Answer 2

Go into an estate agents, they will give you the details of a conveyencer who will sort it all out for you.
Expect the solicitor to charge you £500, and you will need to pay £200 for a survey on the property, from your lender (bank).

Don't forget that you may later need to sell your half, if your circumstances change, and this may be very difficult and complicated, as finding a buyer for half a house is not the easiest task.

Answer 3

Just make sure you go through the proper channels.
Use a conveyancing company to handle the legal stuff and communicate with your friend. Otherwise you may find yourself in a position where you have no legal claim to the house or the money you have spent.
You will also have to purchase insurance if you wish to get a mortgage.

Answer 4

The deed can be done as part of the process when you get the mortgage. The mortgage will be specialized if your friend does not want to be on the loan. Contact me to discuss several options.

Web: http://www.SLarson.com/contact
Email: [e-mail]

Answer 5

it is going to maximum probable come all the way down to those ideas: both you are able to refer on your buddy provide them the data, make a logical selection to promote the entire resources and get out of the partnership, this assumes the fee of the resources is the same as or better then the be conscious If the buddy does not want to save on with: then no be counted what different selection you search for to pursue it is going to contain litigation not a cheap selection not confident if a million, you are able to legally subdivide the unit, then you actual have the problem of the lender, has first lien on both plenty, in the journey that they don't agree then you actual will nonetheless make sure by technique of the unique be conscious and your individuals criminal accountability, they received't agree depending upon the present land fee

Answer 6

Yes.
Go to a solicitor. He will take the necessary steps to place your name on the deeds.