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Thanks so much for all the advice and suggestions.
Kylie – we'll be calling Nationwide Tax at Baulkham Hills. And thanks for your words of encouragement.
We've just had another offer of $20K short of the mortgage (as opposed to $25K) – and I think the advice given a couple of times of taking a loss and moving on might be the best course of action.
imugli & Scott No Mates – I didn't know about leaseholding, so I've learnt something. Thanks for putting it 'out there'!
IP Freely – the 'silent partner' was a school friend of my husband's who was single at the time and had a bit of spare cash. They sealed the deal on a handshake. To cut a long story short, after a while, this friend found a wife, and his new wife didn't like my husband, or paying the share of the mortgage on what she saw was a risky venture. Love won in the end, and the friendship is no more….