Property ownership query

hi there,

I bought a house with my friend a number of years ago during the glory days, we are both named on the mortgage and have been paying 50/50 each month. We do not have any specific agreement governing the mortgage arrangement as we were advised by the solicitor at the time that the mortgage agreement on which we are both named would supersede any arrangement we made anyway since either could dissolve the mortgage and cause the sale of the house (perhaps this was poor advice).

I have not been living there for a while but am still paying my half of the mortgage. Selling is not really an option nor is my friend buying me out so I was looking at renting my old room out but my friend has offered to cover the monthly mortgage payment instead for the next 12 months (he then gets the run of the house), I will still have my name on the mortgage.

QUESTION: Will my friend paying the mortgage for the period diminish my ownership rights in the event of sale and is a separate legal agreement advisable (over and above his written/email confirmation of the arrangement to temporarily take over the mortgage payment in return for full use of the house for the period). We are good friends so I don’t really want to go down this route but I do want to know the potential exposure before I commit to anything.


[FONT=&quot] thanks[/FONT]

I would think that your friend paying the entire mortgage would diminish your rights by that portion of the entire ownership period.

It would be best to sort it out through a note signed by both you of you (that it doesn't). Is the house in negative equity?

Don't think that the fact that the co owner is paying 100% of the mortgage will impact on the ownership.

The issue would be that they are effectively paying off their share of the mortgage faster.

thanks Derek, no I do not believe that it is in negative equity but there is a considerable unrealised capital loss that I do not wish to realise if I can wait another couple of years until the market further normalises and my friend does not wish to move nor is he in a position to fully buy me out.

interesting angle Joe

Rent your 50% to your friend, get a tenancy agreement, just to cover yourself