signing over a mortgage

[monkeyboy81]

I bought a house with a friend 2 years ago for 80,000 and remortgaged 1 year ago for 93,000. I havent lived there for about a year and havent made any payments towards the mortgage in that time, but have been paying half the loan repayment for a few months, even though i only used 3,500 of the 13,000 loan for myself.  I would now like to buy a house with my girlfriend but obviously can't while i still own half the mortgage on the other house.  My friend lets out rooms in the house to other people to help with the house payments etc, of which i make no profit whatsoever ( im not sure if he does either)  My question is: am i entitled to half of the current market value ( 100,000 ) if I sign over the house to him? Obviously the full loan would be covered first so  there would only be about 7,000 left to divide.  He thinks I have got 3,500 virtually for free and that i should sign he house over without claiming any profit, but I wont have got anything for free as the full loan payment will be deducted from what profit i could make, and he will get the house! Please tell me where I stand.

I hope all that made sense, a knowlegable answer would be appreciated.

[ewand]

Thats quite an awkward situation, and could be better answered with further information i.e. did you contribute towards the mortgage in the first year, and what we're the arrangements when you left the house etc. Also, how much did you stump up to buy the place in the first place? What I would suggest is that you took off the �3500 what your contribution would have been over the past year, then add some for inflation of property prices. Another idea is to keep the house, and contribute half as much as the other owner then split the rental income and look to purchase a second home.....if you can talk over this with your co-buyer and a solicitor i'm sure you can come to an agreement. Then, you will be able, finance allowing, to have a nice money spinner in your first property, with a more modest dwelling for you and your partner......hope this is useful.

[Oneeyedvic]

You should not have a problem getting a mortgage even with this mortgage. A lot of people have more than one property. Go to a mortgage broker and get some advice from them (a lot will not charge you as they will get money from the lender for introducing you)