Buy out co owner but pay over the odds

angelmcm

Registered User
Messages
17
Hi all,
Jointly own house with another family member. House valued at 230k with 130k remaining on mortgage. I live in the house. Asked to buy out family member (which I would love to do for practical levels, break tfinancial ties etc) but he wants me to buy him out valuaimg house at 250k
I can afford this but am I crazy to take such a hit ? Prices probably going to fall even more after this crisis ..
advice please
 
So basically he is asking you for a gift of €10,000 ... does he have any basis for his valuation? What is your €230,000 valuation based on?
 
Do you have a tracker mortgage on the property?

Which bank and will they let you keep it?

If you have a tracker and can keep it, this makes the deal more attractive.

Before you say no, what is the alternative? Will you have to sell?

You say you live in the house? I presume he doesn't. How have you adjusted for this? Are you paying the full mortgage?

Brendan
 
We had the house valued at 230k recently but have invested hugely renovating & landscaping etc( water under the bridge I know) 30k each at least but other joint owner wants some of that investment back I suppose
I will be paying mortgage off fully & paying joint owner his share.
If I don’t buy joint owner out we are still going to pay off mortgage 50/50 and we will begin to pay rent to him
 
have invested hugely renovating & landscaping etc( water under the bridge I know) 30k each at least but other joint owner wants some of that investment back I suppose

OK

So he has paid €30k which is not reflected in the value of the house.

But you are benefiting from it as you were part of the design of it.

Seems reasonable to give him the extra €10k.

Brendan
 
I wouldn’t see any gift tax issue there at all. An estate agent has said it’s worth €230k. The other party is contending that it’s worth more and wants €125k to walk. It’s a commercial transaction. And the differential isn’t enough to justify Revenue interest anyway.
 
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