Joint Owner Who Wants To Buy Out Other Party

P

Penfold35

Registered User
Messages
4
Hi I was wondering if anyone has come across the following:-
I am a joint owner (50/50) of a property which is now in negative equity to the tune of 70-80k. I would like to buy out property as I have recently got married so that I have complete ownership of the property The issue is that I would expect other party to pay off their part (35 -40k) of the negative equity before I look at the transfer of equity. I suppose there are a number of questions from this point onwards:-
1. If other owner will not pay off their portion of the negative equity what are my options.
2. Are banks writing off portions of negative equity in this case. Bank is KBC.
3. We are not in financial difficult so not sure how bank would view our case as why would they write off a portion of the debt if we are not in difficulty.
4. Is there another alternative to transfer of equity whereby other party is taken of mortgage?? Doubt this.

I'm sure that this is a fairly common scenario so your thoughts would be greatly appreciated as its a mindfield.
 
Penfold35 said:
Hi I was wondering if anyone has come across the following:-
I am a joint owner (50/50) of a property which is now in negative equity to the tune of 70-80k. I would like to buy out property as I have recently got married so that I have complete ownership of the property The issue is that I would expect other party to pay off their part (35 -40k) of the negative equity before I look at the transfer of equity. I suppose there are a number of questions from this point onwards:-
1. If other owner will not pay off their portion of the negative equity what are my options.
2. Are banks writing off portions of negative equity in this case. Bank is KBC.
3. We are not in financial difficult so not sure how bank would view our case as why would they write off a portion of the debt if we are not in difficulty.
4. Is there another alternative to transfer of equity whereby other party is taken of mortgage?? Doubt this.

I'm sure that this is a fairly common scenario so your thoughts would be greatly appreciated as its a mindfield.
Click to expand...

I recently went through a divorce (no kids) whereby there was negative equity (and arrears) on the property and my ex wanted the house sold. I wanted to keep the property for security for my own son for the future (born since marital split) and the only way of doing this was going through courts to get the deeds transferred to solely my name. I am also with KBC and they are writing nothing off, no arrears, no negative equity, nothing. Once you are paying the mortgage and want to keep the house they won't even agree to a transfer of equity until a large portion of the mortgage is paid off. The only thing you can do is the deeds transfer (I'm sure there is a legal term for it but it escapes me) if your ex is willing but he/she will not pay half the negative equity just because you want to keep the property. Ring KBC and arrange a meeting with them, they are great to chat to and get advice from but they won't be writing off any debt, they have told me this MANY times over the past few months!
 
Markswoman

Your story sounds very interesting and I have noted your references to it in a few different threads.

Would you mind starting a separate thread detailing your case history? I think it could be a great help to many others. I suggest the following format.

1) Jan 2006 bought house with husband
2) KBC SVR mortgage of €300k
3) Jan 2009 - split up -
4) I stayed in house and continued making full repayments
5) Asked KBC to give me mortgage in my name for full amount to "buy him out"

etc. etc.
 
So all looks fairly positive so.....Brendan & Markswoman thank you so much for opening my eyes abit more to this mindfield. Think we will go meet KBC & see what they have to say for themselves & meet solicitor aswell to see what their view on this is.
 
Penfold so glad to hear you are more positive about things, hope your meeting went well.

Brendan I will try as best I can to case study for you now, unfortunately personal issues have come between my getting online and posting in recent weeks.
 
Hi

My sister and I bought a house together in 2007 for 299k. We were both gifted our deposit of 10k each and got a Ulster Bank tracker mortgage for remainder. We currently owe approx. 230k with 29 years remaining. My guess is the house is now worth approx. 160-170k.

My sister and her fiancé are living in the house and covering the cost with help from tenants. My husband and I are renting. My husband also has a tracker mortgage with approx. 200k remaining on an apartment which is valued at approx. 120k. As I am liable for the entire mortgage on the house, coupled with my husband negative equity, we have essentially become unmortgageable despite us both having solid, permanent jobs.

We approached the bank with the following options:
1. My sister and fiancé take over my half of the mortgage.
2. Give up the tracker mortgage as a trade off for me exiting mortgage.
3. My parents take over my half of the mortgage.

All options were denied by the bank.

My husband and I choose NOT to live in his apartment as we are aggressively trying to pay off mortgage with the rent received on the property plus top ups from us. My sister and fiancé claim they are not in a financial situation to adopt this approach to the house and refuse to top up the mortgage themselves. My suggested game plan is to work on the negative equity (i.e. max. mortgage repayments while interest rates are so low) & sell once we have an equal balance sheet.

Ideally I would like to exit from any financial contracts with my sister and her soon to be husband.

Has anyone any suggestions on how to move forward?

Thanks for your time
 
Last edited:
Nagog said:
Hi

My sister and I bought a house together in 2007 for 299k.

We approached the bank with the following options:
1. My sister and fiancé take over my half of the mortgage.
2. Give up the tracker mortgage as a trade off for me exiting mortgage.
3. My parents take over my half of the mortgage.

All options were denied by the bank.
Click to expand...

Hi Nagog, firstly the moderator will probably tell you to move your story to its own individual thread, you'll get more responses that way.

I'm very surprised that the bank refused all the above options, they are being very unfair. Those are 3 good options. I'm amazed your sis & finace were willing to go for option 2, give up their precious tracker mortgage just to get your name off?

In order to get the bank to sit up and take notice, ye would have to be willing to let the mortgage go into arrears, but sounds like your sis & fiance won't go for that option as they are going to lengths (even sharing their home with tenants) to make sure it's paid in full every month so I'd imagine they wouldn't react well to you suggesting they allow it to go into arrears to force the bank to take you off?

If they're not willing to do that, then another way of looking at it I suppose is that your joint mortgage with your sister is being taken care of in full by your sister,fiance and tenants so you're very lucky really. Maybe you should just forget this house that you jointly own with your sister - let them deal with it (as they already are) and put it to the back of your mind knowing that one day it'll be sorted once the house comes back into equity.

I mean if you're not expected to contribute towards it then it's not really an issue for you is it?
 
You must log in or register to reply here.
Back
Top