Buying into a now negative equity mortgage

[allie12]

This is a little complicated, my partner bought his apartment with a good friend in 2004. Circumstances have changed and we have all lived there for the last year-but his friend now want's out as want's to buy with his girlfriend.
While I have an interest in taking over his share of the mortgage, I need a bit of advice. they bought for €390k, and have €330k outstanding on the mortgage (the mortgage is also on a fixed rate of 4.6%-another 2 yrs left on it) but the value is probably only €300k and less than that if they were to actually sell- which would mean they both would sell and have to cough up about €25k each. I have suggested buying in at the higher valuation (€300k) which will mean that the other party will have to pay €15k approx to get out, but as it will be transfering his share of the mortgage etc- I will be keeping all the costs to a minimum.
Just want to see what people's views are on this.

 

[Bronte]

For what reason do you want to buy a house with your partner? What benefit is it for you to buy a house with a value higher than reality. Have you approached the bank to see if you are eligible for a mortgage. I imagine the bank is going to base it on a proper valuation and they may want your partner to reduce his mortgage amount as his share is in negative equity.

 

[allie12]

The property that we live in, which is the one we want to buy- is our home and where we would prefer to stay. The fact that the property is in negative equity is really the case with most properties at the minute. Regarding mortgage etc, there is no problem with that and has been discussed with the bank already.
The bottom line is that the mortgage is still outstanding for €330k, I am willing to share the negative equity with my partner but not take on someone elses.