Joint Ownership

R

realit2b

Guest
Hi,

I've searched through the forums but there are no clear cut answers on this question.

Me and my brother bought a house just over 3 years ago and went 50/50 on everything, deposit, mortgage repayments, etc. We are both on the mortgage and deeds of the house. I now want to get my own place but my brother likes the house and wants to stay there. We have a mortgage of approx $190K. I probably wouldnt be able to afford paying another mortgage so my question is how does buy out of my share of the house work out?
 
Whatever way you jointly agree!

Are you sure that you cannot find anything for example?
 
was in a similar situation myself what we did was got the house valued and say the profit is 60k your brother should buy you out for 30k and agree on a fiugre for furnishings you should split the solicitors fees in half also, will prob cost about €500 each
 
Shouldn't your bro have to pay you have the current property value?
 
From my previous posting in 2008 and the property market going belly up I never followed up on this item, but I was talking to someone recently about it and they said that for my brother to buy me out of the house we would have to get the house valued and then he would have to give me half the value. Surely this couldnt be right as for example the house was valued at 200K, he gave me 100K for my share and he now takes over the 190K mortgage and has given me 100K which he wouldnt be able to afford anyway...thus giving him a mortgage of 290K to pay off and the house only worth 200K..Any suggestions?
 
From my previous posting in 2008 and the property market going belly up I never followed up on this item, but I was talking to someone recently about it and they said that for my brother to buy me out of the house we would have to get the house valued and then he would have to give me half the value. Surely this couldnt be right as for example the house was valued at 200K, he gave me 100K for my share and he now takes over the 190K mortgage and has given me 100K which he wouldnt be able to afford anyway...thus giving him a mortgage of 290K to pay off and the house only worth 200K..Any suggestions?
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In the example you give above, when you receive the 100K you will still owe half the mortgage, so if you pay this off your brother will be left with his half of the mortgage to pay.
 
realit2b said:
From my previous posting in 2008 and the property market going belly up I never followed up on this item, but I was talking to someone recently about it and they said that for my brother to buy me out of the house we would have to get the house valued and then he would have to give me half the value. Surely this couldnt be right as for example the house was valued at 200K, he gave me 100K for my share and he now takes over the 190K mortgage and has given me 100K which he wouldnt be able to afford anyway...thus giving him a mortgage of 290K to pay off and the house only worth 200K..Any suggestions?
Click to expand...

The above does not seem correct. My understanding is this.

If the house is valued at €200k and you have a (joint) €190k mortgage, there is about €10k profit in house. Your profit is therefore €5k.

Your brother would need to go to bank, apply for a mortgage in his own name for €190k, pay off the existing mortgage and give you half the profit (€5k)

Here's the problem - the bank may not give him the mortgage for that much as 190k against a 200k valuation is 95% Loan-to-value........they may prefer more like 92%.
 
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