Re-mortgage or buying family member out

[rocste]

Can anybody explain to me how re-mortgaging works or what is involved in buying somebody out. Bought a house with my sister a year ago and now she wants to sell or else wants me to buy her out. Legally do I have to buy her out at current market value, and what are the chances of the bank letting me take over the full mortgage if according to their criteria I wouldn't have got the mortgage on my own when I originally bought. Any advised appreciated.

 

[Vanilla]

The way it works is that you would have to take out a new mortgage, pay off the old mortgage and pay your sister her share. You don't HAVE to pay market value- if you don't the balance is considered as a gift. So you have to firstly find out if you actually qualify for a new mortgage on your own, if you do you can proceed, if you don't then presumably you have to sell.

 

[rocste]

Presuming I do qualify for a new mortgage would I then be liable for Stamp Duty ?

 

[Vanilla]

See the following from the revenue website:

What is the position where a person, who had obtained first time buyer relief on the joint purchase of a house with another first time buyer, subsequently acquires the other joint owners interest in the house? A person who obtained first time buyer relief on the purchase of an interest in a house would not be precluded from obtaining first time buyer relief on a subsequent purchase of another interest in the same house provided that person has not purchased another house or part of another house in the intervening period.