Want to buy a new house, should I keep my jointly owned apartment in NE?

[uptomyeyesin]

(I copied this from another thread to highlight Trasneoir's excellent explanation - Brendan )

Myself and a friend purchased and apartment in 2007. The usual negative equity applies. I live in the apartment but we plan to rent it out in the future.

My husband and I are saving to buy a house.

We want to keep the apartment.

 

[uptomyeyesin]

Apartment is valued at 200000.
Mortgage is 230000.
Rate is 3.9% variable with Kbc.
Not a tracker mortgage.
Repayments are 1623 (we are currently paying 1723 as a small overpayment).
Rent in the area is about 1400 for similar properties, so if we rent, we would have to sub by 200 per month (assuming rate stays the same).

We only have 20k in savings so whichever deposit is needed will take at least a year to three years to save, depending in what is needed.

Thanks for the replies.

 

[uptomyeyesin]

Thanks Brendan.
Myself and friend are happy to keep the apartment, we've put a lot into it that we hope some day to see a benefit to keeping it long term. Neither of us would be happy to hand over to the other. Sorry if that wasn't clear.

It's the odds of getting a mortgage and what deposit is required that is stumping myself and husband.
I might go through process of applying and see what we can get in principle. Then as you say if we can't get 90% we could make a submission to CB.

 

[trasneoir]

Myself and friend are happy to the apartment, we've put a lot into it that we hope some day to see a benefit to keeping it long term.

Possibly. That's the upside. Have you taken a hard look at the downside?
From a money point of view, sunk cost shouldn't enter into the equation - we should make decisions based on the situation as it stands today, and our best guess about the future.

Edit: here's a better hypothetical
Imagine you had no assets or liabilities today, and your friend came to you with an offer - she's got agreement on a 120% mortgage on this 200k property. If you agree to go halves, you will get 20k, a 50% share of a 200k apartment, and a 120k liability.
Would you sign up?