Joint Mortgage - Best exit strategy

paperclip

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I bought a house with a friend 12 years ago, they will most likely want to move in/own outright next year.

The house is currently being rented, mortgage covered by rent with some change.

Tracker mortgage.

About 275k owed, 20 years left on mortgage.

House is currently worth about that.

I'm happy to keep the status quo, sell in 10 - 20 years, makes the most financial sense. I see it as a nice little nest egg.

I understand circumstances change but want a solution thats best for everyone.

If the house is worth what is owed, and I'm bought out now, then I walk away with nothing, right?

What's usually done in a situation like this?
 
This is a difficult one.

€275k @ 1% gives repayments of €1,200
€220,000@3% gives repayments of €1,200

So the reality is that the mortgage is only around €220k, so you have positive equity of around €50k or €25k each.

If he buys you out, he probably won't be able to keep the tracker mortgage.

So the fairest and most economic solution might be something as follows:
You retain joint ownership.
He moves in.
He pays his half of the mortgage and pays you rent for your half.

But it's a tough one.

Brendan
 
Thanks Brendan, as solutions go, this sounds pretty good, but of course, we'd need to agree on a time frame, I'm sure if we went down that road he'd want to fully own at some point. Also, would need to factor in home improvements that he would do to make it more family friendly.
 
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