Girlfriend buying half of house from brother - how does it work

[gc2006]

Hi all,

Have a quick question - my brother and I bought a house together in 2005. He has since bought another house and is looking to have his half of this house bought out by my girlfriend. The house originally cost 350k, but now has a current valuation of 370k. Meaning my brothers half is worth 185k.

I know I'll have to talk to an accountant / solicitor about the specifics of course, but just trying to get my head around it at a high level. At the moment we have a joint mortgage for this house and was wondering how this process works from a banking / mortgage point of view:
1) The mortgage in essence stays as is - she replaces him on the joint mortgage, which may get increased by another 5-10k as required to cover the buying out of him, meaning that I don't need to do anything really she just needs to provide her info (salary cert, statements etc) to them and we continue on as normal? OR
2) New Mortgage - does my current mortgage get closed and my and my girlfriend get a new mortgage for the new value of the house, as in we apply together for a new mortgage and both have to provide all the info required as if it was a totally new mortgage OR
3)something totally different which I have forgotten

Again, know I'll need to get into the specifics with qualified personnel, but just wondering how it works and what we'll need to have ready for the process etc.

Cheers

 

[z106]

Note that stamp duty will be applicable given that the names on the deeds are changing.(Just because your one is remaining on it does not alter this fact)

Also - If I was your girlfriend I would serioulsy think twice about getting into a property in this climate.
Thsi is most certainly the wrong time for people to be getting into property.

 

[gc2006]

stamp duty - asked my accountant before about this and apparently as she is a first time buyer buying 1/2 of the house it is a separate transacation and therefore she would not have to pay stamp as a first time buyer. But I will get this clarified

as for the economic climate - I appreciate things aren't great, but I dont think the world has to stop. Like we're together 7 years, we've been living together in this house for 2 years so these things have to happen. Also the price we will be getting the house for when she buys my brothers half out will be less than the market value.