This is an interesting point.....
I presume there is some way that one person can remain in the property and pay what amounts to rent to stay there without causing this problem?
Surely the fact that he gets to live there bestows some of the rights and obligations that come with paying rent?"It is not rent and cannot be construed as such and does not bestow on your pal any of the rights and obligations that come with paying rent."
I think it would be much, much simpler if he agrees to pay you rent equal to half the value of the market rent i.e. he rents your half from you. If he gets a tenant, this should be structured as the tenant renting from you.
Then you both continue paying the mortgage equally as you have been doing.
Simplest of all though, may be for him to buy it from you and get a new mortgage. But not if you have a cheap tracker.
Brendan
Another approach might be to do a side agreement with him, where he takes over the house and the mortgage.
The downside for him is that he is getting €50k negative equity.
The downside for you is that the side agreement does not affect your relationship with the lender. You still owe them the money if your fellow joint owner doesn't pay it.
You may also find it difficult to borrow as you will already have a mortgage.
Brendan
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