What happens when a co-owner leaves a house?

Posted on 13 August 2008

My brother and I have co-owned a house for the past 8 years. He recently purchased a home with his girlfriend and moved out. How do we settle up on the mortgage? Do I have to buy him out? What options do I have?

You have a number of options here but whatever you choose you will most likely need legal advice. You could choose to sell, pay off the mortgage, split the profit accordingly and by a new home. You could both choose to keep the property as an investment, and let it out.

If you want to keep the property and live in it, but your brother no longer wants the cost of 2 mortgages you will need to buy him out. To do this you will need to know your own borrowing power to see if this is affordable. Why not call one of our mortgage brokers who will be able to take your details and complete the research to help you on this. You can contact one of our brokers on 0845 413 1053.

I wish you all the best.

Bea

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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