Posted by: Abigail | 2015/09/03 15:46
I own a flat CT in partnership and am interested in buying my partner out.
Is there a formula for establishing what the escalation of the current valuation of a property would be. The last valuation (2012) for the flat was R2,36m.
In addition, is it a good idea to take over the balance of the existing bond and what would the charges be? I have paid up my half – there is still a substantial balance owing by my partner. Would there still be cancellation fees etc, given that there would be no fee for raising funds.
If there is no transfer duty on the sum of R750k and I pay R750 into the existing bond to reduce it – is there any reason why I cannot then “purchase” the balance of the property for R750k and be released from paying transfer duty on the full amount? In other words, my partner would be “selling” me his half share of the property for R750k as opposed to R1,5, as one would do ordinarily in selling something for a lesser value if, for instance, they required the money or the like?
Posted by: Carol Reynolds | 2015/09/03 18:43
The best way to establish value is to ask an estate agent to do a valuation for you. This will be done as a service free of charge. Unfortunately, you will have to enter into a sale agreement and pay transfer duty on the sale, however, if the title deed doesn't reflect ownership at 50/50, you could argue that you already own 75% and are purchasing the remaining 25% which will reduce your costs. You will then need to cancel the bond, so give the bank 90 days notice to avoid early termination penalties. Good luck!
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