Mortgages?

About two years ago my sister and I bought a house together to get us on the ladder, we have done the house up and now are ready to move our seperate ways with our profit. She is moving in with her boyfriend but I have fallen in love with the cottage and want to stay. How do I go about buying her out? If I cant afford the mortage on my own (which I wont be able to) my mums boyfriend is going to come in with me so I dont lose the house and as an investment for him (not live there) but act as a silent partner, how does that work? can someone give me advice on what I do next? how to get the ball rolling?

Libby

check with ur lawyer who w'd help u out ur problems.

I guess you would just apply for a joint mortgage? Try www.surefirefinance.co.uk they may be able to help.

well the easiest thing to do there would be for him to buy out your sisters half.

take the value of the house, less outstanding mortgage, then halve it. you and he together need to take out mortgage for that half+outstanding mortgage. Use this to pay off mortgage and give your sister her 1/2 of the "equity". Because you technically selling your half to yourself you wont need to worry about that.

now it gets complicated. because you will own half the house, but should only be paying a proportion of the mortgage. lets say house is worth 200,000 and you owe 100,000 on mortgage. you would now need a 150,000 mortgage to pay off sisters 50,000 and the existing 100,000 mortgage, but of the 150,000 your "liability" would only be a 1/3rd, your mums boyfriend would be paying the other 2/3rds for his 100,000 share of the house. However if its a joint mortgage you would both be legally liable for all of it if the other one defaults.

I suppose technically you ourght to pay him a nominal "rent" for his half of the property.

The way I read it you would be in the same position as you are now Your mums BF would buy your sisters share.You and she would have to redeem your joint mortgage and you and BF would reapply as if buying another property. Don't forget though that you would have to borrow more money personally as the value of your share will have gone up.You really need to speak to your current lender explaining the situation or go to a mortgage broker.

In Washington State, there is an easy way to do this: have your sister give you a Quit Claim Deed. This absolves her of any obligation regarding the title to the property. Any payment schedule you agree on should be in writing - even the best of families should document the agreement to avoid future problems. Your state probably has some similar process, so contact a title company and ask them the best way to proceed.