Would you like to keep a house that you own with others? Have each person's rights confirmed, agree on a current value and have the accounts between owners examined. Then check the financing and costs before committing. A valuation provides a property value basis, not the final sum to pay or the bank's agreement.
Which rights will you be buying?
Start with the acquisition deed and any subsequent deeds or agreements. An ownership share is the proportion of the property each person owns. It cannot be inferred from the number of years spent living in the house. Fednot's explanation of joint ownership explains that the proportions are determined in the acquisition deed.
Ask the notary to clarify your situation: the matrimonial property regime, agreements, an inheritance or rights split between usufruct and bare ownership may require a different approach. The example below concerns only two owners with equal shares in full ownership and equal responsibility for the debt.
What value should you use for the house?
The purchase price and the capital already repaid do not establish the current value. Fednot recommends determining the current value of the home and, if there is disagreement, jointly choosing an expert.
For a house in the Province of Liège, our method is to document the location, areas, condition, energy performance, works and relevant comparables. Set a common valuation date and give the professional the same information. Our guide to valuing a house in Belgium explains this approach. The valuation does not replace agreement on the value adopted.
How do you move from the value to the sum payable?
Distinguish the property value, the loan and the accounts between owners. The Fednot page on the family home cited above specifically provides for examining personal contributions. Have the evidence and agreements checked: a contribution is not automatically recovered euro for euro.
Illustrative example, excluding costs and with no other accounts to settle. The bank is assumed to accept the transfer of the debt to the person keeping the house.
- Agreed value of the house: 400 000 €.
- Outstanding capital: 160 000 €.
- Net value on these assumptions: 240 000 €.
- Indicative compensation for the departing owner's half: 120 000 €.
The person keeping the house also takes responsibility for the outstanding capital of 160 000 €. The economic commitments therefore total 280 000 € before costs. This is not automatically the amount of a new loan: available savings and the banking arrangement change the financing required.
Why consult the bank before committing?
Your agreement between owners does not automatically release the departing borrower. The Fednot page on the family home distinguishes taking over the property from being released from the loan, which requires the financial institution's agreement.
Present the full scenario to the bank: remaining debt, compensation, personal funds and costs. Ask for its written conditions for financing and releasing the other borrower, together with any changes to security and insurance. Do not assume that the loan or its previous interest rate will be retained.
What costs and household budget should you add?
Ask the notary for a breakdown tailored to the transaction and the date of the deed. Have its legal classification, any registration duties and the other deed costs clarified. Our example includes no amount for registration duties.
Add any bank costs, then energy, insurance, property tax (précompte immobilier), maintenance and foreseeable works. For a roof or installation that needs replacing, obtain a quotation before fixing your budget. Compare this scenario with selling, repaying the loan and settling the accounts, without relying on a future increase in value.
What are the answers to frequently asked questions?
Is half the house worth half the estimated price?
That is not enough to determine the sum payable. The debt, each person's rights, the accounts between owners and the costs must be examined. The example applies only under its explicit assumptions.
Is an agreement between owners enough to leave the loan?
No. Have the bank confirm the departing borrower's release. Transferring a share and being released from debt are two separate matters.
Which documents should you prepare to compare buying out and selling?
Gather the title deed and agreements, a current valuation, the loan statement, evidence of contributions and works, and your budget and available funds. The notary examines the rights and accounts; the bank examines the financing.
Are you weighing up keeping or selling your house? Request your valuation report for a reasoned property value basis. The legal and banking conditions still need to be checked with the relevant professionals.
