Buying my friend out

carina

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So I will need to go to a Financi Advisor anyway I think but just looking for some advice in the meantime...

I bought an apt with a close friend 10 years ago. We lived together, no issues for years. We moved out a couple of years ago & have the apt rented.

We payed €260k at the time. We owe about €202k. €190k seems to be most we'd get if we sold now.

She is now married with children & looking to buy with husband. He owns a property with his parents. That is not being sold. They can't get a mortgage while tied to these 2 properties. She is mad to sell.

I am living with my boyfriend in his house. We would like to maybe invest in house or sell it & get a mortgage together for a bigger house.

I have no savings.

TBH I'm happy with house rented but she wants out. With no savings is there a hope in hell of me being able to buy her out? We obv had deposits at the time of buying.

Would bank allow us to sell & carry small amount of debt?

Am I mad to consider selling now when there's a "chance" we could make money if we held out?

Anyone been in a similar position?

I'm in a FT Perm job. Salary €34k. Personal loan will be cleared in 3 months. Couple of hundred on a credit card.
 
Did you do up an agreement when you bought the house together? If so, what does it say?

Do you have a variable rate mortgage or a tracker mortgage? If you have a tracker mortgage, you must make every effort to keep the property.

Have you been in arrears in the last 5 years?

Which lender is it?

What is your boyfriend's salary? Depending on the lender and the nature of the mortgage, they might allow him to take over your friend's share of the mortgage.

Brendan
 
No agreement. We will come to a mutual agreement no matter what.

Variable.

Never ever in arrears.

He earns circa €50k.

Thank you Brendan.
 
If your boyfriend is on 50 and you are on 34 , you should be able to get mortgage approval for €202k easily enough. Have you asked the lender would they allow him take over the mortgage?

1) Agree a valuation with your friend - say €190k
2) Your boyfriend buys her half of the house for €95k
3) She is freed from €101k , half the €202k mortgage, so she owes you €6k.

The bank should agree to it.

I know you and your boyfriend might be madly in love, relationships break down. Do a joint ownership agreement before he takes over his share. You have to discuss what happens if you break up and are in negative equity and what happens if you are in positive equity.



Brendan
 
Is your friend going to be looking for money, besides being bought out of the mortgage?
 
Guys my boyfriend has a mortgage of circa €200k that he only got 12 mths ago. It's his house we live in.

She would be happy to just walk away with no debt. She actually suggested selling & owing maybe €10k between us.... I'd say she'd take my hand off to just get out of it.
 
OK, you won't get a mortgage for that amount on your own.

I think that the only thing you can do is sell it. You will have to pay the shortfall the the bank.

We would like to maybe invest in house or sell it & get a mortgage together for a bigger house.

You and your boyfriend should be able to trade up from his house. Your salary of €34k will allow you to borrow an additional €100k or so.

Brendan
 
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