• Selling My Share

    By Guest on 18th May 2016

    I have a joint shared ownership with my sister jointly. our share is only 25%. she has raised it, she wants to buy me out but am not 100% on my calculations. I moved out of the property in 2013 and she has solely been paying the mortgage and rent. my room is been used by her daughter. we purchased the property at £180000 of which 25% we raised. we took a loan of £36000 and deposit with legal fees etc was £5000. just looking on zoopla the current value is around £250000 which could be more.
    my question is, is it right to work out the equity on current value or on the value as it was in 2013? or if you could help with the calculations please.

  • 1 Answers

    By Guest on 30/05/2016

    It depends on what was agreed when you bought the property. If you just purchased as joint tenants or as tenants in common in equal shares then you are entitled to 50% of any equity in the property as at now. You work out the equity by finding out what the property is worth on the open market, taking off the housing association's share and deducting what is owing on the mortgage. This figure is then split in two. Ignore the legal fees etc when the property was purchased and any payable when you transfer the property now as these should be dealt with separately and split equally.

    So for example if the property is now worth £250,000 then your 25% share is worth £62,500. From this deduct the outstanding mortgage debt. Whatever is left is the equity which should be split 50/50 (unless as I say you agreed something different when you bought the property).

    There is a moral (and more importantly a legal) argument to say that your sister should be entitled to some credit for the fact that she has been paying the mortgage on her own for a period. You haven't said whether the transfer is amicable or whether you have fallen out but either way you would do well to reach an agreement between yourselves as if you put this in the hands of solicitors the arguments as to who gets what can become very complicated and expensive and you could both end up spending all your equity in legal fees. It would be useful for you to find out what was owing on the mortgage at the date you stopped contributing and what is owing now so you can see what percentage of the original loan your sister has paid off on her own.

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