The redemption of balance is made in the context of the dissolution of the community , either by succession following the death of a spouse or by divorce.
The operation of the redemption of balances makes it possible to become owner of the part of another person (in general the spouse)
Calculation of redemption of balance
The calculation is very simple. We start by determining the net worth of the dwelling. for that, it is enough to do the following operation:
VALUE OF HOUSING – CAPITAL REMAINING ON LOAN = NET VALUE OF HOUSING
Then we determine the value for each member of the community, which is simple to the extent that everyone owns 50% of the property.
NET VALUE OF HOUSING / 2
The difficulty obviously lies in determining the value of the property. In the event of divorce, it is not uncommon for the two ex-spouses to disagree on the value to be taken into account.
The legal way and the appointment of an expert will then be the only solutions.
Example of calculating a balance
Imagine that a real estate property has a value of € 180,000 and that the capital remaining due at the time of the purchase of the balance is: € 40,000. We will start by determining the net worth of the property .
€ 180,000 – € 40,000 = € 140,000
Then we determine the share of each member of the community :
€ 140,000 / 2 = € 70,000
€ 70,000 is the amount that the person who wants to keep the house will pay to the other.
Financing the redemption of balance
Financing can be done by own funds or by credit. The conditions proposed by the banks are those of a classic real estate loan.
The conditions of obtaining are those which affect the rate of debt or 33% maximum and the quality of your file (statement of account statements, amount of income, personal contribution, rest to live …).
You can opt for either a fixed rate or a revisable rate, knowing that these are sufficiently secure to keep control of its budget.