Hi!
Would like to ask for advice.
2 years ago i have bought a house with my friend (not partner). The price was £130,000, we put 10% deposit and had £117,000 mortgage. Today we still have about £111,000 on the mortgage outstanding, and the market price of our house is no more then £110,000 at the moment. Now I'd like to split from him, and either buy his part of the house, or sell him my part of the house. This means I (or him) will need kind of 100% mortgage due to 'todays house market value'='outstanding mortgage'. What do you think, is there any chance? Any other ideas what i could do in my situation?
Thanks!
Ilona.

It's more normal in this situation to sell the property and split the resulting debt/profit. You could get a valuation and do as you suggest but the valuation (and the sale/purchase) would have to be agreed by you both. When you sell, there can be no arguement about the valuation.

I doubt very much that you would get finance for a 100% mortgage.

I agree that selling the property is the easiest way, but then me and my friend will loose the money we have put for the deposit. We will not get £130,000 (or more))) for the property in the next few years, I think. Could you advise me please what shall I do in the situation if my friend will not agree to split (sell the property)?

If your friend won't split the house (ie. buy you out or sell his share) then I think you could force a sale but it probably wouldn't be worth the hassle.

You might be able to get your current mortgage company to assign one or other of you the full existing mortgage without any further deposit (provided you, or your friend, earn enough to cover the new mortgage) and then it sounds like a straight transfer of the property would be appropriate which would mean whoever sells their share loses their share of the deposit.

If you really want to get out of the position then offer to give him your share and talk to your mortgage provider. That way they gt the best chance of getting their deposit back, although it might take a few years. If you can't get a transfer of mortgage and you really want out then you'll have to sell and accept the loss of deposit. Would an option be to let your room out to cover your half of the mortgage which would allow you to move and rent something elsewhere until prices pick up again ?

I like the idea to assign one or other of us the full existing mortgage without any further deposit. Will speak to the bank as soon as possible. To be honest I thought the bank will take to the account the current house market price (which is probably lower than outstanding mortgage) but not the price we have paid 2 years ago. Anyway it is worth to ask them. My wages should be ok to take the whole mortgage (£111,000 at the moment) on me. My salary is just over £30,000 gross a year + I could show the income from my lodgers (about £4,000 gross a year)

To let my room out and find another place for myself is not an option as my friend is not living in the property since we bought it. Actually he lived for first 2 month, then moved to London due to work. And I don’t think so he will ever come back to live in our house again. By law at least one of us MUST live in the property on the permanent basis. So do I. Live and look after. His room (2 rooms actually) are let out for 2 lodgers which are paying my friend’s half of the mortgage. I am quite happy with this, as long as I do not have to pay whole mortgage and own just a half of the property.

Thank you for really useful advice!