Equity Division – Parting Ways

Parting Companies

What happens if you agree on a joint mortgage but years later decide to part companies? This often happens with family members and sometimes with friends. You decide to get a mortgage because it’s more cost effective to join forces with a sibling, parent, family member or friend. You co-habit the property but decide it’s time to move on. There’s no conflict but you do need to involve a property lawyer to help both parties keep things legal.

One Or Two Lawyers?

Once you get the property value and measure it against the mortgage owed, then you need to understand your options. This can be an amicable parting of companies and a lawyer will not interfere with the dynamics of the relationship. A property lawyer/solicitor can act for both parties, in this case, with no conflict of interests.


There are options available and these will be laid out on the table by your lawyer. For instance, part of the property value can be transferred. If you party gives up a share of their ownership rights but keeps a stake or ‘interest’ in the home. This means that when it is sold they will receive a percentage of its value. But this needs to be decided with the expert advice of a property lawyer. It also needs to be written down in a legal document.

Property For Business

One case scenario is a buy-to-let property. A mortgage might be divided into two loans and a business loan. If both parties apply for a loan to cover a mortgage and a business loan, two thirds of the loan is for the mortgage and one third is for the property’s commercial purpose. You get a business loan to invest and a mortgage to buy-to-let and get a return on your investment.

Splitting Profit

So you’ve made enough profit and now want to move on. Either your business partner buys you out, or you buy your partner’s share, or you both sell and split the equity. You will need to consider the joint loans – business loan and mortgage. The equity split is based on the sale of the property.

Have you and your partner bought a property as an investment and are now ready to move on? We can offer friendly, personable, expert advice. Please give us a call and arrange an appointment to discuss options and the best way to move forward. SG

Make An Enquiry

Call us now on 020 7113 4003 or complete our Online Enquiry and we will be delighted to talk with you about your legal matter.

Free Enquiry

Back to all news

Share Article With:

Make An Enquiry

    Global Excellance Awards

    Client Reviews

    DG Law were fantastic throughout our purchase process. We had a short, fixed, timeline to

    Venetia Lawson-Cruttenden [solicitor] is fantastic!  She is always so thorough and efficient and gives you the

    DG Law supported us through a very difficult contractual negotiation to achieve exactly the outcome

    We were very pleased with the way that DG Law helped us on our transaction

    Thanks for all the help from DG Law in pulling together our somewhat complicated loan. 

    DG Law resolved a difficult lease renewal for us and their services were excellent –

    I needed understanding and experienced legal advice. DG Law provided an excellent service at a

    My experience was second to none – the service was professional and personal. DG Law

    DG Law always step up to the plate on our transactions and handle the various

    DG Law was recommended to me and my partner and I received excellent advice –

    Having worked with DG Law a number/couple of times now, I have been really impressed

    DG Law were constantly at hand, and kept pro-active throughout the thorny process of getting

    DG Law organised and ran a very useful session to help to make our team’s

    DG Law came recommended to me and whilst setting up a new business it was

    We were recommended three lawyers to handle the sale of our seven year old successful

    Why Choose Us?

    We live by our core values of transparency, flexibility and being honourable – every day

    We put ourselves in your shoes so we understand your problems from the inside out

    We deliver our advice in a way that is easy to understand