Buying half a house

nikkiandoli

Hi,

My partner and I have been looking into buying my Mum's house, but due to our financial history it is more or less impossible to get a mortgage for 120-140k with less than 25-30% deposit.

We have come up with a potential solution, but we are both unsure whether or not it can be done, or where to seek advice!

Basically, could we get a mortgage for 50% of my Mum's house (around 60-70k) which would give her enough cash to repay the remainder of her mortgage and buy a small retirement cabin which she really wants to do.

So, legally can this be done? She'd own 50% and have 0 mortgage, and we'd own the other half, paid for with our small mortgage. After 4/5 years when our credit files are more lender friendly we can go ahead and buy the other half.

Many thanks in advance.

socrates

there are ways to do this - but a decision this important needs proper legal advice

nikkiandoli

Thanks,
Can anyone direct us to an appropriate place to get free legal advice of this nature?

poppysarah

A local solicitor will give you haf an hour free normally. After that ask about charges.

nikkiandoli

Looking into this further, we're talking about a transfer of equity. However, my mum still owes £25k on her mortgage - is it as 'simple' as we'd take out a mortgage for the 60k, clearing her mortgage and giving her the cash to buy her new place?

I understand the existing lender needs to agree to the transfer, but as it'd be a new lender it's effectively the same as a new mortgage application for us (with our lender assuming the transfer of equity)?