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Selling my half of the house...

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  • 27-07-2006 5:55pm
    #1
    peeko
    Closed Accounts Posts: 834 ✭✭✭


    Hi,

    Sorry if this is the incorrect forum to post this. I've had a good look around, can see some alternatives, but I think this might be the best place to be :rolleyes:

    About 6 years ago myself and my mate bought a house together. Now I'm looking to sell up and move on to greener pastures. My friend went and talked to the bank today and they said they would lend him the cash no problems, and they also told us how much we had left to pay on the mortgage.

    SO I was wondering if any of you peeps out there have gone through this process before? And know exactly what the next steps are?

    Thanks in advance
    Peeko


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    #2
    peeko
    Closed Accounts Posts: 834 ✭✭✭peeko


    Prehaps the wrong Forum... Mods?


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    #3
    GreeBo
    Registered Users Posts: 27,161 ✭✭✭✭GreeBo


    Get a valuer in.
    Get a market value for the house.
    Your mate owes you 50% of this figure.
    Chances are your mate is going to owe you a fair bit more than the mortgage thats left, i.e. he will now need a bigger mortgage as he is buying a more expensive house.


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    #4
    RainyDay
    Closed Accounts Posts: 6,925 ✭✭✭RainyDay


    Did you agree an exit strategy as part of your initial agreement with him?


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    #5
    Idleater
    Registered Users Posts: 6,236 ✭✭✭Idleater


    GreeBo wrote:
    Get a valuer in.
    Get a market value for the house.
    Your mate owes you 50% of this figure.

    well, though this is technically correct, the only way to be sure that no one is getting "done" is to actually sell the house on the open market.

    The house might sell for more or for less than the valuation.

    Either party can bid in the process and fund the purchase with 50% of the money received from the sale from the second party.

    This is of course if both parties do not agree on the valuation.

    L.


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    #6
    peeko
    Closed Accounts Posts: 834 ✭✭✭peeko


    We agreed that we would do things honourably.

    He knows I want to leave and has no problems. He wants to buy the half off me, so I think putting it on the market might be a waste of money? I want to do things honourably also, so I have no problems with him buying the house, at the current market value. Houses on the street I live in have been going for 315-330, will a valuer take this into consideration.

    Thanks for your replies


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    #7
    RainyDay
    Closed Accounts Posts: 6,925 ✭✭✭RainyDay


    peeko wrote:
    We agreed that we would do things honourably.
    It's very easy for family and/or friends to fall out as property prices escalate. Anyone considering buying a shared property should ensure that a clear agreement on what happens when one party wants to get out of the arrangement is signed off beforehand. There is a list of issues to be considered in such an agreement over on Askaboutmoney.com


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    #8
    loyatemu
    Registered Users Posts: 14,890 ✭✭✭✭loyatemu


    get 3 or 4 estate agents in to value it - most agents will do this for free.
    take the average price they suggest and use this as the basis for the deal.


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    #9
    peeko
    Closed Accounts Posts: 834 ✭✭✭peeko


    loyatemu wrote:
    get 3 or 4 estate agents in to value it - most agents will do this for free.
    take the average price they suggest and use this as the basis for the deal.

    thanks this was suggested to me yesterday and made a lot of sense.

    I wonder will I need to involve a lawyer.


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    #10
    ircoha
    Closed Accounts Posts: 2,290 ✭✭✭ircoha


    watch out for CGT on your proceeds as the your half of gain will be subject to CGT.

    There will also be stamp duty payable

    Also make sure the security is left in your mates name only, the deeds will need to be released and re-pledged in 1 name, the joint account needs to be closed, his life cover will need to be beefed up and you need to ensure the joint and several gtee is cancelled.

    On the lawyer side as you are selling, u prob dont need independent legal advice, you mate s lawyer shoould do the work for you


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