Apartment - Negative Equity

[pele10]

I have an apartment with another lad that we bought in the mid 00s. It's not far from City Centre. Was bought for 400k, around 50k paid off and probably worth 270k at the moment. We lived in it for a number of years and then moved in with our partners in rented accom. The apartment has been rented out for last few years which more or less covers the mortgage. A few things have gone wrong now with apartment but nothing too major. We have grown apart over the years and only really ever contact each other when its related to the place. There is no bad blood, just one of those things were people do their own thing.

Now they are looking to buy their own house and it was vaguely mentioned about maybe one of us taking over the apartment and potentially them living in it. It was just mentioned in passing. There are three options as I see it

We take over the mortgage and continue to rent it out and I dont want to live it in

They take over the mortgage and move in

Nothing changes and it stays rented out forever more.


Obviously if the place was worth a few quid, one would need to buy the other out. As it's in negative equity, would one party have to pay the other to get out of it? Who would you even contact to look into such a situation. Both of us are reasonable so it's not a case of trying to pull a fast one, what ever is fairest in current climate.

Any advice would be great.

 

[Branz]

The first key player here is the lender to the two whoses names are on debt.
The second key player is any lender who your pal asks to lend on a new place.
Perhaps post a few numbers on this site as a case study to let the experts here see what might work.

 

[Bronte]

Will the bank allow either party to take over the full mortgage. If yes, then you need figures to figure out the best option. If you both cannot agree, then you continue as is.