Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Buying someone out how does it work

Options
  • 14-05-2016 1:26pm
    #1
    Annasopra
    Registered Users Posts: 41,067 ✭✭✭✭


    How does it work if you want to buy someone out of a joint home halfway through a mortgage. How do you value what should be paid?

    It was so much easier to blame it on Them. It was bleakly depressing to think that They were Us. If it was Them, then nothing was anyone's fault. If it was us, what did that make Me? After all, I'm one of Us. I must be. I've certainly never thought of myself as one of Them. No one ever thinks of themselves as one of Them. We're always one of Us. It's Them that do the bad things.

    Terry Pratchet



Comments

  • Options
    #2
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    Chances are you're not going to be able to remove anyone from the existing mortgage, the person planning to acquire full ownership will more than likely need a new mortgage in their own name.

    Assuming both parties contributed equally, the process might be; agree a value for the house, work out the equity (difference between mortgage remaining and current value). Retaining party get a new mortgage for the value of the house less half the equity. New mortgage used to pay off existing mortgage and pay leaving party half the equity.

    Example:

    House valued at €200,000
    Mortgage outstanding €120,000
    Equity = €80,000

    New mortgage of €160,000 (mortgage outstanding plus half of the equity)
    €120,000 to pay off old mortgage
    €40,000 to buy out leaving party

    Party A gets a €200,000 house for €160,000 (€40,000 discount)
    Party B gets €40,000

    Both parties should get independent legal advice!


Advertisement