Payday
2017-02-04 13:49:28
- #1
Hello
Friends bought a house together. Now after a few years (well under 10 years and not married), the separation has followed. The house is 50:50 registered to both and heavily indebted.
now there are several methods:
1. Sell the house completely: totally unprofitable, because the house could not be sold at the price needed to break even in the matter with zero. (prepayment penalties, no ultra deluxe premium location at completely exaggerated prices, etc.) you expect about €50,000 loss in the end. so it’s basically out of the question
2. rent out the house and cover the financing with the rental income: could be done, however new houses wear out too quickly by tenants with several children (without children the house would be too big and impractical). also the “standard” for renting is set too high, not everything could be paid. overall unprofitable and not a great solution
3. one buys the other’s half of the house: theoretically the best solution, he would take over her half, she would give him her half for €1. however real estate transfer taxes and notary costs of about €10,000 are incurred. she does not have this. furthermore, the bank does not release her from the contract because he allegedly does not earn enough. but that is actually not the case.
4. she simply moves out and he pays alone. basically a great thing for her, he pays off her house share. if he can no longer pay, she could quickly be ruined. besides, of course he has no interest in such a solution.
5. a document would be drawn up at the notary and she would theoretically be “out.” they were at the notary/lawyer and he said one could draw up a document on the basis of which she would virtually forfeit her claims to the house but also no longer have to pay. but that is supposedly complicated (what nonsense – this has been done many times before and either the document has legal certainty now or it doesn’t) and would also have to be notarized. however, no real estate transfer costs would be incurred for this, only notary costs in whatever amount.
she is somehow hoping for this story now. but I cannot imagine that it will work like that. as long as he keeps paying, it could work out well for her. but as soon as he can’t anymore, they would come after her. accordingly, she would have a sword hanging over her head for the next 25 years. and what is the ownership status then if she suddenly has to pay. overall not a sensible solution.
my suggestion was still “get married quickly, then the house would be transferred without real estate transfer costs in divorce.” however, then divorce costs apply and in general it’s not so great to marry quickly after separating.
do you possibly know another solution? I find it amazing how difficult it is made for both of them. basically, they are forced either to file for private insolvency (or be so heavily indebted that working doesn’t make sense anymore ^^) or live together again.
Friends bought a house together. Now after a few years (well under 10 years and not married), the separation has followed. The house is 50:50 registered to both and heavily indebted.
now there are several methods:
1. Sell the house completely: totally unprofitable, because the house could not be sold at the price needed to break even in the matter with zero. (prepayment penalties, no ultra deluxe premium location at completely exaggerated prices, etc.) you expect about €50,000 loss in the end. so it’s basically out of the question
2. rent out the house and cover the financing with the rental income: could be done, however new houses wear out too quickly by tenants with several children (without children the house would be too big and impractical). also the “standard” for renting is set too high, not everything could be paid. overall unprofitable and not a great solution
3. one buys the other’s half of the house: theoretically the best solution, he would take over her half, she would give him her half for €1. however real estate transfer taxes and notary costs of about €10,000 are incurred. she does not have this. furthermore, the bank does not release her from the contract because he allegedly does not earn enough. but that is actually not the case.
4. she simply moves out and he pays alone. basically a great thing for her, he pays off her house share. if he can no longer pay, she could quickly be ruined. besides, of course he has no interest in such a solution.
5. a document would be drawn up at the notary and she would theoretically be “out.” they were at the notary/lawyer and he said one could draw up a document on the basis of which she would virtually forfeit her claims to the house but also no longer have to pay. but that is supposedly complicated (what nonsense – this has been done many times before and either the document has legal certainty now or it doesn’t) and would also have to be notarized. however, no real estate transfer costs would be incurred for this, only notary costs in whatever amount.
she is somehow hoping for this story now. but I cannot imagine that it will work like that. as long as he keeps paying, it could work out well for her. but as soon as he can’t anymore, they would come after her. accordingly, she would have a sword hanging over her head for the next 25 years. and what is the ownership status then if she suddenly has to pay. overall not a sensible solution.
my suggestion was still “get married quickly, then the house would be transferred without real estate transfer costs in divorce.” however, then divorce costs apply and in general it’s not so great to marry quickly after separating.
do you possibly know another solution? I find it amazing how difficult it is made for both of them. basically, they are forced either to file for private insolvency (or be so heavily indebted that working doesn’t make sense anymore ^^) or live together again.