How do I get out of this flat share?
Discussion
Well not me.. my brother specifically. 
I've read many personal dilemma topics on this forum and would like to reach out to the collective knowledge of the PH crew if I may! 
18 months ago my brother bought a flat with a best friend. They pay the mortgage 50/50. Said mortgage is due for renewal in June.
Best friend is no longer best friend. They've been "sharing" on and off, and publicly, the same girl for a year. Yes........ there have been arguments and yes its come to blows I'm afraid to say.
Anyway, the girl element is all over thank god, but regardless the best friend has decided he has to move out and get on with his life. Like many people I should imagine they find themselves in negative equity to the tune of roughly 20k which means they cant simply sell the flat and move on.
The possible resolution is that another friend is happy to move in and take on the mortgage etc. The previous best friend is happy to walk away at any cost, and give up the rights to the flat which is all good.
So the big question is who does he talk to sort this mess out and get one mate off the papers and another mate on - and can they do it now or is it best to wait for mortgage renewal date? Is this relatively simple/cheap to achieve since the mortgage company simply care about getting their payment right?
Any advice appreciated!! Please! And before you ask she wasn't fit.
I've read many personal dilemma topics on this forum and would like to reach out to the collective knowledge of the PH crew if I may! 18 months ago my brother bought a flat with a best friend. They pay the mortgage 50/50. Said mortgage is due for renewal in June.
Best friend is no longer best friend. They've been "sharing" on and off, and publicly, the same girl for a year. Yes........ there have been arguments and yes its come to blows I'm afraid to say.
Anyway, the girl element is all over thank god, but regardless the best friend has decided he has to move out and get on with his life. Like many people I should imagine they find themselves in negative equity to the tune of roughly 20k which means they cant simply sell the flat and move on.
The possible resolution is that another friend is happy to move in and take on the mortgage etc. The previous best friend is happy to walk away at any cost, and give up the rights to the flat which is all good.
So the big question is who does he talk to sort this mess out and get one mate off the papers and another mate on - and can they do it now or is it best to wait for mortgage renewal date? Is this relatively simple/cheap to achieve since the mortgage company simply care about getting their payment right?
Any advice appreciated!! Please! And before you ask she wasn't fit.
but i see where you are coming fromNasty, rather you them than me.
If the property is devalued & devaluing then whoever takes on the 50% will be walking directly into negative equity & comitting themselves to that. This could again cost a friendship when owner #2 wants out as well.
Best to sell I'd have thought & cutyour their losses.
All over a burd who munts?
Should've gone to the Dam & nailed some professionals, much cheaper & better value for money.
If the property is devalued & devaluing then whoever takes on the 50% will be walking directly into negative equity & comitting themselves to that. This could again cost a friendship when owner #2 wants out as well.
Best to sell I'd have thought & cut
All over a burd who munts?
Should've gone to the Dam & nailed some professionals, much cheaper & better value for money.
He needs to know first of all whether the lender will consent to the existing co-mortgagee being removed and replaced with the new bloke. If he doesn't meet their credit rating test and/or can't prove income to their satisfaction, they probably won't do so.
If he can, it should be a simple matter for a solicitor to attend to the tranfer of the property from brother plus ex-mate's names to brother plus new mate's names and to execute a fresh mortgage deed.
If he can, it should be a simple matter for a solicitor to attend to the tranfer of the property from brother plus ex-mate's names to brother plus new mate's names and to execute a fresh mortgage deed.
swerni said:
Lurking Lawyer said:
He needs to know first of all whether the lender will consent to the existing co-mortgagee being removed and replaced with the new bloke. If he doesn't meet their credit rating test and/or can't prove income to their satisfaction, they probably won't do so.
If he can, it should be a simple matter for a solicitor to attend to the tranfer of the property from brother plus ex-mate's names to brother plus new mate's names and to execute a fresh mortgage deed.
wouldn't that incur stamp duty?If he can, it should be a simple matter for a solicitor to attend to the tranfer of the property from brother plus ex-mate's names to brother plus new mate's names and to execute a fresh mortgage deed.
unless they're a pair of flamers and married
swerni said:
wouldn't that incur stamp duty?
unless they're a pair of flamers and married
It could do, yes - and marital status makes no difference! unless they're a pair of flamers and married
SDLT is payable on a transfer of equity if the value of the interest in the property exceeds the 0% rate threshold. Probably not an issue here but you're right to flag it as a potential issue!
I'm not a property lawyer so can't give you chapter and verse but I know it was potentially an issue when I transferred my house into joint names after I got married. In the event, no SDLT was payable because the 50% share fall just within the 0% band but at no time did anyone suggest that it wouldn't be payable because it was a transfer between spouses.
It may be that in your friend's case there was no SDLT payable because of the value of the interest transferred rather than the status of the transferee? I stand to be corrected by someone who knows more about land law than I vaguely remember from university and Law School many moons ago though!
It may be that in your friend's case there was no SDLT payable because of the value of the interest transferred rather than the status of the transferee? I stand to be corrected by someone who knows more about land law than I vaguely remember from university and Law School many moons ago though!
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