Hello,
Hopefully someone can advise me on any issues I need to consider when buying a friend out of our jointly owned house. I’m trying to figure out if I can afford to take the house on my own.
My friend and I bought our house 3 years ago @ 235,000 and the current value is now 340,000. We were both First Time Buyers. We have an outstanding mortgage of approx. 210,000.
Here are the financial queries I have so far:
I have a cash lump sum I can use to pay my friend. Would €65,000 be the correct settlement figure?
340,000-210,000= 130,000/2 = 65,000 ??? (ignoring contents for the moment)
Also, I have a gross salary of 45k with no loans etc., so would I get approval for a mortgage on my own?
Is there anything obvious I have over-looked?
Any advice is appreciated.
Thanks.
Hopefully someone can advise me on any issues I need to consider when buying a friend out of our jointly owned house. I’m trying to figure out if I can afford to take the house on my own.
My friend and I bought our house 3 years ago @ 235,000 and the current value is now 340,000. We were both First Time Buyers. We have an outstanding mortgage of approx. 210,000.
Here are the financial queries I have so far:
- Do I have to pay stamp duty on my friend’s half of the house I will be purchasing?
- What is the likely penalty for coming out of a 5 year fixed mortgage @ 3.75% We have 3 years left and mortgage was taken out over 30 years. Or will our mortgage company waive this fee if I continue my mortgage with them?
- Do I lose out on my preferential FTB mortgage tax relief as I will have to take out a new mortgage?
- What kind of legal fees would I be looking at?
I have a cash lump sum I can use to pay my friend. Would €65,000 be the correct settlement figure?
340,000-210,000= 130,000/2 = 65,000 ??? (ignoring contents for the moment)
Also, I have a gross salary of 45k with no loans etc., so would I get approval for a mortgage on my own?
Is there anything obvious I have over-looked?
Any advice is appreciated.
Thanks.