Author Topic: Shared ownership - buying with friends  (Read 8795 times)

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Offline Bluwise

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Shared ownership - buying with friends
« on: February 12, 2011, 20:46:49 PM »
Does anyone have experience of buying a property with friends as both a holiday home and for rental?  I've been thinking about it as the initial cost would be far less between 3 parties and we could buy bigger.   As we have holidayed together for many years, it won't be a problem socially.  Just wondered about the legalities and indeed, if anyone has done this did it turn out as you expected or do you regret it?



Offline Scunner

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Shared ownership - buying with friends
« Reply #1 on: February 12, 2011, 20:59:46 PM »
There are no problems legally, other than the fact that it means you all would need to agree to sell if one/a few of you wanted to, and would also mean all of you would need to be present to do so (or all give power of attorney). If ever someone wanted to get shot of their share and you decided to buy them out, legally it is excessively expensive.

I know of quite a few people who bought with friends/family and although I couldn't say who, they all tend to be like you and your friends, they holidayed together so know they get on well enough to commit to a major purchase like this. The only note of caution is my initial point, that if some of your friend's circumstances change and they want/need to sell their interest, it can be a cumbersome process.

Offline Bluwise

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Shared ownership - buying with friends
« Reply #2 on: February 12, 2011, 21:49:26 PM »
Thanks for that Scunner - the challenge of someone possibly needing to opt out is quite a big one and as you have said, an expensive one if we wanted to buy their share.  Still, it's something we can talk about some more as we're only just thinking about it at the moment.  I have to admit, the idea of our own place in Calis is sooooo tempting but I want to be realistic too.

Offline puma

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Shared ownership - buying with friends
« Reply #3 on: February 12, 2011, 22:32:42 PM »
i know someone who has experienced sharing the property they bought and it as all ended up at the solictors, after everyone falling out

Offline Scunner

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« Reply #4 on: February 13, 2011, 00:33:52 AM »
quote:
Originally posted by Bluwise

the challenge of someone possibly needing to opt out is quite a big one and as you have said, an expensive one if we wanted to buy their share.

The cost of buying someone's share is of course considerable but the cost of removing them from the title deed is going to run into thousands too - as you would effectively have to 'sell' the property owned by (say) 8 people to 6 people (the original 8 minus two bailing out). With that comes property purchase tax (that you've already paid once when you originally bought) and other fees.

If it were me, I would probably get one person to appear on the title deed and have a legal contract drawn up detailing the various shareholders in the property. That takes a lot of trust, but if you can't trust them you shouldn't be buying a property with them  ;)

Offline loz

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Shared ownership - buying with friends
« Reply #5 on: February 13, 2011, 02:09:18 AM »
Alarm bells!
Agree with Scunner one name on the Tapu, draw up a contract under UK law pertaining to the Turkish property, and ensure all UK Wills cover the property.
Contrary to everything you read regarding Turkish Wills and Inheritance choose your UK solicitor very carefully ensuring that they are fully conversant with international Tax law and reciprocity between UK and Turkey.
A Turkish Will is a waste of money, a Good UK Lawyer fully conversant of the above will suffice.

(Wish our friend had known this before)

Offline joan

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Shared ownership - buying with friends
« Reply #6 on: February 13, 2011, 07:29:36 AM »
What is the law in Turkey regarding property when someone dies.Say the tapu is in both names (husband and wife) what happens when one dies.I understand its not the same as in england were say the husband or wife (whoever is left)would automaticly be entiled to the property.I know an English will doesnt count here in Turkey but if you have made a will here in Turkey would you still have problems.Loz can you explain why a turkish will is a waste of money.Its just that we have made a turkish will and think we have done everything right but would be interested to know other peoples experience.Thanks.

Offline legless

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Shared ownership - buying with friends
« Reply #7 on: February 13, 2011, 11:19:32 AM »
Sue have mailed you
Ron

Offline Karennina

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Shared ownership - buying with friends
« Reply #8 on: February 13, 2011, 11:52:02 AM »
I am also interested in the answers to the questions that Joan has asked if anyone knows please, thanks as always in advance.

Offline Jacqui Harvey

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Shared ownership - buying with friends
« Reply #9 on: February 13, 2011, 12:13:19 PM »
I am with Puma here, a recipe for disaster.  Only have to look the the good friends who have done the lottery/bingo together and then fallen out and ended up in court.  
I once started a business with my best friend and after 6 months we were not on speaking terms.




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