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Getting out of a mortgage with a friend?

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  • 28-11-2010 8:59pm
    #1
    Yellow1
    Registered Users Posts: 40 ✭


    Hi guys

    I bought an apartment with my friend (of over 20 years) about 3 years ago (unfortunately at the peak of property prices just before the bubble burst). Now I know hindsight is a great thing and we should never have done it but at the time it seemed like the best thing to do ("renting is throwing money down the drain" and "you'll get your foot on the property ladder" and "you can always sell it in a couple of years if things don't work out" were the phrases that come to mind). Anyway we ended up going for it and we both regret it terribly as it turns out we weren't compatible living together and also we both want to move on now which isn't possible given the whole negative equity/country gone down the pan situation frown.gif Its not really feasible for us to rent out the whole place for financial reasons (we'd lose our tracker and mortgage interest relief for a start)
    My question is: Is it possible for one person to "buy" the other one out of the mortgage while we're in about 100k of negative equity? I know this could possibly mean the one getting out of the mortgage has to pay the person staying about €50k which would be mad? Is there any other way??
    Any help would be greatly appreciated confused.gif


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    #2
    ntlbell
    Registered Users Posts: 16,288 ✭✭✭✭ntlbell


    talk with your lender.


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    #3
    Yellow1
    Registered Users Posts: 40 ✭Yellow1


    Thanks :) yeah thats what I am planning to do but before I do I was just on here to see if anyone has been in a similar situation or had any advice for me.


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    #4
    Mr McBoatface
    Closed Accounts Posts: 1,579 ✭✭✭Mr McBoatface


    In short the banks don't care about your situation, you both signed and contract and they expect you to honour it. Given the times they will not agree to change the terms of the loan if they deem it increases the risk on the loan.

    I know of two sister in a similar position to you. After discussion with their lender between them they have to pay the bank the amount of negative equity the house has built up (75 grand in this case) and the sister who will remain in the house has to increase the length of mortgage and will loose the ECB tracker option.


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    #5
    Yellow1
    Registered Users Posts: 40 ✭Yellow1


    Thanks for the info


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    #6
    3DataModem
    Registered Users Posts: 3,997 ✭✭✭3DataModem


    Yellow1 wrote: »
    Its not really feasible for us to rent out the whole place for financial reasons (we'd lose our tracker and mortgage interest relief for a start)

    are you sure you'd lose tracker? really sure?


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    #7
    jor el
    Closed Accounts Posts: 16,713 ✭✭✭✭jor el


    You'd only lose the tracker if you change the mortgage. This would definitely happen if one buys the other out, you won't be able to do this and keep that mortgage. Renting has nothing to do with your mortgage, so it won't effect it.


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    #8
    dudara
    Registered Users Posts: 33,518 ✭✭✭✭dudara


    Moved to Banking & Insurance & Pensions

    dudara


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    #9
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    jor el wrote: »
    You'd only lose the tracker if you change the mortgage. This would definitely happen if one buys the other out, you won't be able to do this and keep that mortgage. Renting has nothing to do with your mortgage, so it won't effect it.

    If they are not living in the property then its considered an investment property rather then main residence and would more than likely lose the tracker.

    One of the terms of most trackers is that it is the primary residence and not an investment property.


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