I have a joint mortgage with a friend who now want to leave. We have £60K worth of equity in our property and our mortgage left to pay is virtually as it was when we bought the house four years ago, less about £2K (total still to pay is £60K). Does this mean that I would have to pay half of the equity plus all of the mortgage payments if I wanted to keep the house? That would mean £30K in equity and all the mortgage payments to retirement (virtually double the 60K mortgage by the time retirement comes along!)??
It just seems a great cost to keep the house and my friend, although walking away from the house, would be taking £30K...if of course I had that kind of money! :-(
2007-01-24 21:35:35 · 6 answers · asked by D 2 in Business & Finance ➔ Renting & Real Estate
You don't have £60k equity in the house. Equity is how much of it you own, ie paid off the mortgage, as opposed to the amount that still has mortgage on. So you have no equity in the house, as you say you still have £60k of mortgage to pay which means you do not 'own' any of the house, the mortgage lender does.
But yes your information is correct in that you will have to buy your friends share and still pay the full monthly mortgage payments. Assuming you are both in this 50:50, you will need to get the property valued by 3 estate agents/valuers, and the amount you will need to buy your friend out for is half of the average figure, and get yourself a new mortgage deal to cover this amount and your half of the house.
Like you say this is a lot of money, and it may be better to sell the house and split the money left over after fees etc..., although depending on how much deposit was put down and by who, and the LTV of the mortgage (ie 100% mortgage), you wouldn't actually be left with £30k each, it will be less.
2007-01-24 21:51:32 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Have you thought of seeling a half share in the house through an estate agent? You would have it sold so you had it i'in common' rather than joint. Obviously you would want to be sure you got on with the person and check out how you would do it (see a solicitor for this) but it might solve your probelm ; keep your equity and give someone else chane to get on the property ladder.
2007-01-24 21:50:13 · answer #2 · answered by D B 6 · 0⤊ 0⤋
If you're buying her out of the plan, then yes you might have to pay more with the fact that you still have your mortage right now to pay off, and then you will have the part of the mortgage that she is not able to pay. I don't think that it will raise a lot more, but it will be a little bit more I believe.
2016-03-18 00:43:21 · answer #3 · answered by Kristin 2 · 0⤊ 0⤋
if you sold the house you would get 120K for it, pay back 60K and split the remainder between you - 30K each.
what you need to do is get a new 90K mortgage on the 120K property, use it to pay your friend the 30K you will effectively owe them and pay off the 60K mortgage.
2007-01-24 21:52:42 · answer #4 · answered by alatoruk 5 · 0⤊ 0⤋
Sounds like if one person wants out, then you either both have to sell the house and split the profits down the middle or the house is sold, but you buy it for a price you both can agree on. What's the fair market value of the house? find that out and then offer your friend a little less, since that person is the one who wants out. Say, you get the realtor fee if you were to sell and you buy it too.
2007-01-24 21:42:06 · answer #5 · answered by Anonymous · 0⤊ 0⤋
you need to see a mortgage advisor. you don't pay them half the value of the property as the property is not paid for.
2007-01-24 21:46:12 · answer #6 · answered by charl203 3 · 0⤊ 0⤋