Im being bought out, help!!

[BUYMEOUT]

Hi there

am looking for general advice, and or experience from anyone else who has been in the same situation.

i wont go into personal detail, but this is the gist of it.

i own a property with a relative, and they want to buy me out, to which i have warmed to the idea and have agreed..but how much should i expect?

here are the figures:

3 x valuations, all say between 16k -120k

left on the mortgage is 74k

i invested 20k


Now, from my understanding, i SHOULD in theory get:

1: my orignal investment back (20k)

2: plus any equity in the property

so, to recap, if the mortgage is 74k, my relative must increase it to 94k to give me my 20k investment back, in the first instance.

then the difference between 94k and lets say, the average price is 117k (assuming this has been agreed by the mortgage company) is 23k

then i should get half of that

so id walk away with £31,500

depending if my relative can afford to do this.

are my calcualtions right? am i spot on?

if there are any solicitors,mortgage consultants on here, who can tell me "yes your right" or "no your wrong, thats not how you calculate it"

that would be much appreciated.

much obliged!

[brian]

The selling price of your home is what the valuations suggest it is. If the valuations were between £120,000-160,000 then that is what you'll need to put the property on the market for.

If you try and offer a far cheaper rate to a relative than the market price, then I'm very much under the impression that the tax man will treat it as a benefit in kind, and therefore slap an appropriate tax bill on the difference!