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Bought with friend now I want to sell - what's the fairest way out?

12 replies

LuckyBlackKitty · 09/07/2015 15:29

I bought a place with a friend some years ago.

She now wants to buy me out of my share. How would you work out a fair price?

I'm desperate not to let this affect our friendship but I also want a fair price for the property.

I would prefer it to be sold to someone else and we split the profit 50/50 but as she wants to stay there. That's not possible.

What would you do?

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DorisLessingsCat · 09/07/2015 15:30

Get three estate agent quotes and take an average?

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WinterOfOurDiscountTents15 · 09/07/2015 15:32

Seems fairly straightforward. Get three valuations, work out average. Calculate your equity. She can then buy out your share. But dont you have a legal agreement to cover this eventuality?

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LuckyBlackKitty · 09/07/2015 15:43

No, we foolishly didn't get an agreement.

We have had the estate agent visit and I think she was shocked by how much it has gone up in value. I know she can afford to buy me out but she just seems reluctant.

I'm s bit stuck really.

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Northumberlandlass · 09/07/2015 15:47

I've just bought STBXH out of our family home. I have stayed.
3 estate agent valuations, take an average. We still had mortgage.
Split the equity 50/50 and as I was staying in the house I paid for legal bills (although this was partly to get it all moving)

Even without a written agreement, she must realise that you are due your share at todays market value?

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Northumberlandlass · 09/07/2015 15:48

You aren't stuck at all. Refuse to sell unless you are getting your share!

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Blinkinwinkin · 09/07/2015 15:48

Get 2 more quotes - perhaps it was an unrealistically high quote? You will only know if you get more quotes. If she is reluctant, then er, don't sell to her? Whats your other option? Is it currently rented? Do you live there now?

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Ohanarama · 09/07/2015 15:52

Get a chartered surveyor's valuation report, they are more independent than a estate agent whose valuations are often on the high side to get your house on the market with them. Surveyors do valuations for legal purposes such as probate or divorce and are more accurate. You will have to pay though.

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LuckyBlackKitty · 09/07/2015 15:53

I hope so. She just seems to be stalling and saying she's not sure if she's going to buy me out or not.

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LuckyBlackKitty · 09/07/2015 15:55

We've had three valuations and they all said the same. A surveyor is a good idea.
My room is currently rented but I still have to pay into it as the rent doesn't cover my share of the mortgage.

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springlamb · 09/07/2015 15:58

What's in it for you if she's living there and you're not? Does she pay you rent for your half?
Perhaps it's time to end the arrangement anyway so you can both realise your equity and reinvest as necessary. If she cannot afford to buy you out, perhaps her best bet is for the property to be sold on the open market and to use her share towards a property she can afford.