advice needed on buying share in house

M

mskildare

Registered User
Messages
22
Hi all,
Looking for advice on what to do when buying share in house.

I own my house and my boyfriend is going to buy half of it.
At present mortgage owed €205k
Approx current value €350k

What is best way of working out how much he owes me? Was told it's basically 1/2 value less 1/2 remaining mortgage as he'll be paying that.

Then someone else mentioned that I have paid mortgage for last 7 years so does that need to be taken into account?

Also (last question!!) will he be liable for stamp duty? He's not a FTB.

Hope that makes sense.
Thanks in advance
 

Hi mskildare.

I definately think the above calculation is too simple and is more in your boyfriends favour.

I would take into account your seven years mortgage repayments. Those repayments now have a "value". And say you sell in ten years time and the value of your property increases, that "value" would increase aswell . The only way for it to be fair is that your boyfriend pays you for at least half of that value even then if all the calculations were done he would probably benefit more.

In relation to stamp duty. He would be liable. There are some banks who will do 2 on mortgage one on title. This might help you out with the stamp duty issue.
Who is your current lender?
 
Currently with IIB.
So regarding mortgage payments already paid what way would be best to work this out taking other factors into consideration. Sorry if I seem totally stupid about this but need to be totally sure on figures before we send application in.
The whole thing has me very confused!!
 
What is best way of working out how much he owes me? Was told it's basically 1/2 value less 1/2 remaining mortgage as he'll be paying that.

I would think ½ today’s value less ½ the remaining mortgage is right.

He would owe you €72,500.

Its past or future worth or the number of years you have been paying the mortgage is irrelevant, as he’s paying you ½ of what it is worth to day.
 

thats what i thought initially as well. i presumed past mortgage payments done and dusted.
he currently owns house with his brother who is buying him out so whole thing complicated to say the least! If past mortgage payments to be taken into account then does that mean that has to be taken in when working out how much he is owed from his house sale.
 
You are making this too complicated.

If you own a car worth €20k and you sell me half of it, I pay you €10k.

It does not matter how much you paid for the car or when you bought it. In fact, it doesn't matter how much you owe on it either.

So, you have a house worth €350k. He should pay you €175k for half of that house.

The mortgage is a separate issue. If he has €175k cash, he pays that to you and you pay that off your mortgage, leaving you, and you alone with what is left of the mortgage.

He can have his name added to the mortgage and take responsibility for any proportion of it he likes. It can be 50%. It might be more or less.

If he takes half of your mortgage, €102,500, then he owes you €72,500 cash. If he takes €75,000 of your mortgage, then he owes you €100,000 cash.

If he takes 75k of your mortgage, then his repayments would be 36.5% (75/205) of the repayments.

But the most important thing of all is that you do up an agreement in writing before you conclude the transaction. So if you split up, then you know where you stand.

How long have you been in the house? Did you get exemption from stamp duty? If you are now selling it, you may face a clawback of stamp duty.

Why is he buying it? Are you planning to get married? If so, there is no stamp duty on a transfer from a woman to her husband. This would save you €3,500 (7% of €50k)

Brendan
 
He is buying it as we want to live together and made most sense for his brother to buy his share and then for him to buy 1/2 of mine.
I'm living here 7 years. Paid no stamp duty as I was a FTB and house was brand new at time of purchase.
 
Your boyfriends transaction with his brother has nothing to do with you. It may make sense for your boyfriend but does it make sense for you. You should be very careful before you sign/sell over your house to your boyfriend, sometimes these things can end in tears so as previously stated you need to do up a legal agreement as to what happens in case you split up.
 
Your boyfriend's brother will be paying legal fees and stamp duty on his purchase from his brother.

Your boyfriend will be paying stamp duty and legal costs on his purchase from you.

If you split up, you will have further legal and stamp duty bills.

Seems like a lot of expense. Let your boyfriend move in and rent him a room.

Brendan
 
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