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First Time Buyer - Buying with a friend.
Tony_R
Posts: 280 Forumite
Hello.
I'm looking to be a first time buyer around the end of this year/beginnning of next.
I will be buying with a friend so that I can get somewhere semi decent. He is probably one of my longest friends and the only friend who I would really trust in buying somwhere.
By the end of this year I should have around £27,000 in savings. My friend has more but I would rather go exactly 50/50 on everything.
So let's say between us we have savings/a deposit of £55,000. My salary is £26,000 and my friends £30,000, so a combined salary of £57,000.
Properties I would be looking at are 3 bedroom houses (2 of which must be approximately evenly sized double bedrooms), plus a spare for guests or possible rental oppurtunity with another friend.
The houses which would suit currently cost between £210,000 and £230,000. The area would be South Croydon, Purley, Shirley, Whyteleafe etc...
How easy it is for two friends to get a joint mortgate and what kind of multiplyer would we be looking at roughly?
Plus as well as the desposit what other charges would there be. I am guessing at
Stamp Duty £2000-£2200
Mortgate fee (upto £1000?)
Solictors £500? (at a guess)
White goods/furnishings etc £1000
What other things should we take into account?
Plus I assume we would need some kind of legal contract to say what our shares are? Even though I trust him entirely.
and Life Insurance to cover each others halfs? How much is that approximately?
Sorry for all the questions, but thanks for your time.
I'm looking to be a first time buyer around the end of this year/beginnning of next.
I will be buying with a friend so that I can get somewhere semi decent. He is probably one of my longest friends and the only friend who I would really trust in buying somwhere.
By the end of this year I should have around £27,000 in savings. My friend has more but I would rather go exactly 50/50 on everything.
So let's say between us we have savings/a deposit of £55,000. My salary is £26,000 and my friends £30,000, so a combined salary of £57,000.
Properties I would be looking at are 3 bedroom houses (2 of which must be approximately evenly sized double bedrooms), plus a spare for guests or possible rental oppurtunity with another friend.
The houses which would suit currently cost between £210,000 and £230,000. The area would be South Croydon, Purley, Shirley, Whyteleafe etc...
How easy it is for two friends to get a joint mortgate and what kind of multiplyer would we be looking at roughly?
Plus as well as the desposit what other charges would there be. I am guessing at
Stamp Duty £2000-£2200
Mortgate fee (upto £1000?)
Solictors £500? (at a guess)
White goods/furnishings etc £1000
What other things should we take into account?
Plus I assume we would need some kind of legal contract to say what our shares are? Even though I trust him entirely.
and Life Insurance to cover each others halfs? How much is that approximately?
Sorry for all the questions, but thanks for your time.
MFW 2015 - #88 £3,345 / £3,500
MFW 2014 £2,990,MFW 2013 £7,905, MFW 2012 £12,216
Opening Mortgage Balance (15th July 2010): £200,999
Current Mortgage Balance(2nd July 2015): £150,999
Total overpayments to date: £30,292.00
Updated 19/05/2015
MFW 2014 £2,990,MFW 2013 £7,905, MFW 2012 £12,216
Opening Mortgage Balance (15th July 2010): £200,999
Current Mortgage Balance(2nd July 2015): £150,999
Total overpayments to date: £30,292.00
Updated 19/05/2015
0
Comments
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You need to think about what happens if one of you wants/needs to sell, and how you go about it i.e. if one of you gets married, or you fall out. Make sure this is all agreed and in writing.Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0 -
and factor in what if there's negative equity in these scenarios - i.e. one of you needs to pay to leave....You need to think about what happens if one of you wants/needs to sell, and how you go about it i.e. if one of you gets married, or you fall out. Make sure this is all agreed and in writing.0 -
You must be very very good friends...What will happen when you want to live with a significant other? Would you not be in a good position to buy a smaller house each?!
But since you're asking, your solicitors fees will probably be a lot higher than you think, and even more if you take into account searches.
Also £1000 for furnishings and white goods won't go too far - a decent set of sofas could run to that(don't buy cheap - we only paid £400 and they're the bane of our existence) and if the place needs carpets, curtains and a lick of paint (best case scenario - worst is you will need to redecorate entirely) that could run to thousands.0 -
In all honety I could never imagine myself settling down, having a family etc. It's just not me.
We've know each other for years and years. We are best friends, people may find it a strange suitation to share with a friend but I'm 100% sure it wouldn't be that complicated.MFW 2015 - #88 £3,345 / £3,500
MFW 2014 £2,990,MFW 2013 £7,905, MFW 2012 £12,216
Opening Mortgage Balance (15th July 2010): £200,999
Current Mortgage Balance(2nd July 2015): £150,999
Total overpayments to date: £30,292.00
Updated 19/05/20150 -
-
In all honety I could never imagine myself settling down, having a family etc. It's just not me.
That's what my boyfriend said once upon a time... :rotfl:
But anyhow, my points above still stand. My advice is to get yourself on freecycle, start getting rid of anything you don't want to take with you and find some bits e.g. fridge, freezer - they might not last long, but they'll be great while you're saving up for something decent. Better than buying Argos cheap brand and having to replace every few years - this goes for all furniture etc!0
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