icklesweet Posted December 13, 2006 Share Posted December 13, 2006 how does it work when someone has to buy you out? Someone i know is going through this and would like to know that she ois getting the best deal. it would seem the other party is gaining the most... if you have knowledge about how this works please email me and i will explain the details........ dont want to post it on here. I would really appreciate some proper advice.... many thanks icklesweetie@hotmail.co.uk Link to comment Share on other sites More sharing options...
kate55 Posted December 13, 2006 Share Posted December 13, 2006 Hi Sent you an email. Link to comment Share on other sites More sharing options...
Cyclone Posted December 13, 2006 Share Posted December 13, 2006 In general a buyout (of property presumably) should work roughly like this; Value the house, get 3 valuations, take the middle or average value. Work out how much of the mortgage is outstanding (statement from the bank should clear this up). Eg, valuation 100k, outstanding mortgage 40k. Subtract the mortgage from the value, in my example leaving 60k. So at the moment both people have 50/50 ownership of 60k equity. To buy out the other one partner would have to pay the other 30k, they'd probably have £500 of solicitors costs in order to change the name on the deeds and the mortgage to be under the name of the buyer outer. The buyee walks away with 30k (in this example) and the buyer keeps the house and mortgage for 40k. Link to comment Share on other sites More sharing options...
tanya Posted December 15, 2006 Share Posted December 15, 2006 Just like to add - Cyclone is spot on, if both of you have contributed equally to the mortgage. There may be some charges from the mortgage company as some treat it as a re-mortgage, others just remove one name. The other person will need independent legal advice at some point, so you will need one 'major' solicitor whom you both trust, and then one to go through the transfer deed and any mortgage release papers with the leaving person. The second solicitor should charge around £50, as it is basically a few letters and a straightforward meeting. If they're splitting amidst a hail of bullets and shouting, best to have two major solicitors, although the cheapest way is as I detailed above. Link to comment Share on other sites More sharing options...
frankief Posted December 15, 2006 Share Posted December 15, 2006 An estate agents valuation is not always the same as a likely selling price, especially at the moment. You know these people talk it up a bit to inflate the seller's ego! Link to comment Share on other sites More sharing options...
HThorpe Posted January 22, 2007 Share Posted January 22, 2007 In general a buyout (of property presumably) should work roughly like this; Value the house, get 3 valuations, take the middle or average value. Work out how much of the mortgage is outstanding (statement from the bank should clear this up). Eg, valuation 100k, outstanding mortgage 40k. Subtract the mortgage from the value, in my example leaving 60k. So at the moment both people have 50/50 ownership of 60k equity. To buy out the other one partner would have to pay the other 30k, they'd probably have £500 of solicitors costs in order to change the name on the deeds and the mortgage to be under the name of the buyer outer. The buyee walks away with 30k (in this example) and the buyer keeps the house and mortgage for 40k. So does the buyer outer increase the mortgage to cover the £30000 making a new mortgage of £70000?and does the mortgage lender let you do this based on the equity that has built up i.e £60000? Link to comment Share on other sites More sharing options...
LesleyB Posted January 24, 2007 Share Posted January 24, 2007 So does the buyer outer increase the mortgage to cover the £30000 making a new mortgage of £70000?and does the mortgage lender let you do this based on the equity that has built up i.e £60000? The buyer may need to raise a mortgage or loan to buy the other party out unless they have the money in the bank. Often the existing mortgage company will allow a second mortgage on the property or an equity release loan. This sort of thing happens all the time and mortgage companies will make their money out of it. On top of solicitor's fees you will have to pay for the costs of raising the finance to buy the other party out so expect anywhere in the region of £500-£1000 in costs alone. There may be things you can use to offset the total cost. Have you at any stage supported the other party significantly so that they may better themselves by further studies or making a career change and has that career now taken off? Are you foregoing future enjoyment of their pension? Lot to be considered in a relationship breakdown and some of these things could be used to reduce the amount of money that has to be raised. Regards L. Link to comment Share on other sites More sharing options...
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