whats the market rate and outstanding balance?

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.

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.

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 !

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).

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.