We have 3 person bought a house few years back and staying in the house and 3 of us is paying for the house loan until now. 1 person is going to quit (buy another property) and the other 2 person will going to continue with the house loan. So what can I do to have win-win situation for us?

I'm thinking what to do to best for 3 of us:
a) is refinancing and 2 person continue to pay the loan with the profit will spilt with 3 person.
b) sell off the house and spilt the profit? (afraid this wont works since market nowadays is very bad and guess no one will buy)


Please give some suggestion...

whats the market rate and outstanding balance?

market rate around 520k - 530k. balance im not sure, need to check back again. Original price is 338k

a) Since he wants to quit, is he willing to take this route ? Refinance cost money and is he willing to dump in more money ? Refinance needs a revaluation of property at current price which might be lower as state in b). Even if he agrees, calculation will be messy when the property is sold later. Best to take route b)

b) Sell and split profit or losses. Close the case and avoid buying property in joint names esp friends, if possible. Friends can be foes because of this arrangement.


This post has been edited by mini orchard: Oct 8 2020, 05:15 PM

i still prefer b and of course 2 try to maintain the house as current financial situation and to have a place to stay, 2 of them which one of them is me, try not to increase any cost of it.

Beside a and b, is there any suggestion?

Refinancing involve legal fees, stamp duty and valuation report fee.

Even if the person wants out now agreed, the issues will come up again in the near future, it might be the other guy or you .... unless all agreed to set a firm date for disposal no matter is profit or loss.



This post has been edited by mini orchard: Oct 8 2020, 07:01 PM

ah i see. i thought refinancing only involve banker and customer.. ok thanks for the feedback.

Everytime when the issues come up, eiither one will agrees or disagrees. So how are your going to settle the issues. Since now someone brought it out, now is the best time to settle once and for how and when to sell ! Your right price may not be the other two right price then !

need to discuss with the 2 of them. Most likely will sell the current house and spilt the profit even. Now have to worry if the house can sell off or not during these pandemic period.

Can one of you just buy the house?

In such situation, is better to sell to arm length buyer.

Determining the price among the three can reallly test the friendship if one decide to buy.

This post has been edited by mini orchard: Oct 8 2020, 08:23 PM

I agree with you but waiting for potential buyer take times. So if really like the house, why not just buy it at market price ( can nego abit around the price).

what do you mean by buying the house? do u mean refinance? 3 of us own the house now. last time we bought is around 300k, market price now is around 500k..

Buying over the share portion of the friend/s selling.

Each of you have 1/3 shares. If both of your friends want to sell and you like to keep the house, then you buy over their combined 2/3 shares at an agreed price

To determine the agreed price, your engage a valuer to do a formal valuation report and to accept the price as final without further negotiation, otherwise the deal will not go through. The cost share by 3.

Then you engage a lawyer to draft the SnP to transfer the 2/3 shares to you. You have to pay legal fees and stamp duty.

Your can then apply to the current bank to finance the purchase. You have to pay legal fess and stamp duty. Depending on the bank whether they accept the earlier valuation report as they normally requires one b4 approving any new loan. Otherwise, you need to redo another new report.

Do check with the refinancing bank whether you qualify for new loan before agreeing to buy over their shares. You may taken other loan after your bought the house.

Your SnP lawyer will then settle the payment to your friends and the house now is only yours.

This post has been edited by mini orchard: Oct 11 2020, 11:22 PM

can help how do i rough calc now if based on market price is 520k, remaining loan is roughly 250k. interest rate 2.95%. Is the loan amount in bank loan inclusive with interest? because i saw the loan account is left 250k.

What you see the balance in online transaction statement is the principal outstanding excluding monthly interest. Every month the bank will calculate the interest and bill accordingly. When you pay instalment, the amount will knock out the interest portion first and the balance will go reducing the principal.

You will notice the reduction of principal at slower rate because of the large interest portion calculated based on 'big' outstanding loan. Is normally towards the tail end that the principal reduces more and the interest charge less. ... just like fd ... higher fd amount, more interest receive and vice versa.

This post has been edited by mini orchard: Oct 12 2020, 09:50 AM