Ftb

marlau

I am a FTB looking to buy with 2 good friends. We have a 34500 deposit and are looking to borrow 170,000 or more. Our incomes are 16,000, 16050 and 14500 are we kidding ourselves or can we borrow that much. I know we could use online borrowing calculators but they never account for 3 buyers. Help please.

black-saturn

I cant speak for anyone else but I think buying with friends is a huge mistake. When one of you wants to move on it makes a headache and also if one of you falls out with another it makes things very difficult.

sarah_elton

Do think carefully about it, but some people do do it.

Make sure you get a contract drawn up by a solicitor - it'll be well worth the cost in the long run. This should detail exactly what the process is, if one you wants to move out. I know it probably seems unnecessary at the moment, but you'll be thankful if the situation ever arises - it's very awkward having to just agree everything when it's friends.

Make sure each of you think through the implications if that happens - i.e. in a couple of years could two of you afford to buy the third out if need be. It may mean you all have to move, etc.

cresswell80

marlau wrote:

I am a FTB looking to buy with 2 good friends. We have a 34500 deposit and are looking to borrow 170,000 or more. Our incomes are 16,000, 16050 and 14500 are we kidding ourselves or can we borrow that much. I know we could use online borrowing calculators but they never account for 3 buyers. Help please.

try the share to buy scheme through Britannia Building Society....click here...

herbiesjp

There are several lenders that will consider 3 or 4 applicants.

However, all of them will need to consider the details of the application before being able to agree.

marlau

sarah_elton wrote:

Do think carefully about it, but some people do do it.

Make sure you get a contract drawn up by a solicitor - it'll be well worth the cost in the long run. This should detail exactly what the process is, if one you wants to move out. I know it probably seems unnecessary at the moment, but you'll be thankful if the situation ever arises - it's very awkward having to just agree everything when it's friends.

Make sure each of you think through the implications if that happens - i.e. in a couple of years could two of you afford to buy the third out if need be. It may mean you all have to move, etc.

My 2 best friends are brother and sister and we have been friends for 10 years so it's unlikely we will have a falling out. I have even lived with one of them before, so I'm quite confident we'll have no problems. Have already discussed a contract and we have agreed to the terms. This will not be a long term thing as one of them will be moving out in about 2 years and then we have agreed to sell the property and my brother, me and my best friend will look to buy another property. This is more of a buisness arrangement to make money rather than simply getting a house. Thanks for your concern and advice.

marlau

cresswell80 wrote:

try the share to buy scheme through Britannia Building Society....click here...

Thanks will give this a try.

Ian_W

marlau wrote: This is more of a buisness arrangement to make money rather than simply getting a house.

Like any business arrangement do your research. Quite a lot of people who post here foresee house prices going down over the next few years. A majority [recent forum poll] see them rising but no-one I know is forecasting very quick or very large increases in house prices any time soon.
If you're buying at around £200K as it seems and prices rise by 5% pa where you are then in 2 yrs you'll have £20K "profit" but after you've deducted your buying & selling costs that will be halved. £10K split 3 ways for 2 yrs paying a third share of a £170K mortgage is NOT a brilliant return IMO. Of course prices could rise more than that, but they could rise less or even fall.
To buy to get on the property ladder is one thing, as a business arrangement to me it's fraught and doesn't offer enough of a return. BoL though.