Brother wants to take out joint mortgage against my will
Comments
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He’s completley irresponsible. He told his solicitor that he’d forwarded me all his financial info. Nothing of the sort. All I had was one email stating the monthly interest only payments. I was obviously worried about the interest free bit too.
My father has also backed him, and can’t understand why I am unwilling to help him. I have no other family either.
This house is also in the north of England where property is relatively cheap. So in my opinion it’s so completely unnecessary along with all the nastiness etc.0 -
it does not sound like this would be sensible.
The problem if you buy him out he will just come asking for more.
Is he also expecting the rent to pay the interest?
What's the place worth and gross yield?
you could go on the mortgage on the basis that an extra £25k's worth of the house is yours+your 1/2 and take the reduces income and hope for some capital growth.
still not ideal,
if your dad is so keen why not mortgage his house and see if the son pays.0 -
Interest only deal of about £100 a month over 25 years! I did tell him what about the capital. Will need to be paid at some point.
The rent gained is £600 per month. House value approx £180k to £200k. Although houses are not selling near there. The Tennant has also spent her own money doing the house up.0 -
I'm a little confused. What has the house worth 460k got to do with the house you've inherited ?Never pay on an estimated bill0
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With the Mortgage being a BTL, assuming the property is let out and the rent is more than the Mortgage, it should not affect your borrowing capacity for your own Mortgage.
However, if he misses a payment, pays late or refuses to pay at all you would both be 100% liable for the Mortgage. So you could find you are making the repayments. Personally, if you are arguing about it at this stage, I would sell up and keep it separate. Business and family rarely mix well, a BTL is a business. With the equity, you can both do as you wish with your own share and then there are no family fall outs. You both want very different things by the looks of it.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
He’s over stretched himself and bought a house for £460 k for him and his girlfriend and his children. The house we jointly own is worth approx 180k and the House he wanted to take a joint mortgage out on.0
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My brother wishes to take a buy to let mortgage out on a house that we have both inherited. The property at the Moment is mortgage free and held in equal shares.The rent gained is £600 per month. House value approx £180k to £200k. Although houses are not selling near there. The Tennant has also spent her own money doing the house up.
Could you buy him out?
Would the tenant be interested in buying the house?0 -
Interest only deal of about £100 a month over 25 years! I did tell him what about the capital. Will need to be paid at some point.
£50k £100pm that's 2.4%
The rent gained is £600 per month. House value approx £180k to £200k. Although houses are not selling near there. The Tenant has also spent her own money doing the house up.
£600pm on £190k that's gross yield 3.8% but the tax will eat into that.
Not that great but more than the potential interest..
I think buying him out for £90k will be lower risk than sharing a mortgage for £50k0 -
I would outright refuse, and if he won’t / cant buy you out, tell him he either agrees to sell the property or you will force force a sale. Better to be out of this joint ownership, than carry on as you are.0
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What KP said, sell up. Your brothers finances are not your responsibility neither is the tenant. Maybe they would be interested in buying it.
Don’t sign anything don’t let yourself be bullied into it. Doesn’t sound as if the rental is anyth7ng other than a burden to you. Get rid.0
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