Joint Mortgage, but the 2nd buyer doesn't intend to live in property

Singlemummy_2

If you purchase a house with another person and that person does not intend to live there, are there any implications?

Kavanne

Er not as far as I am aware as I own part of my mum's house and all it meant is for selling/buying in the future we'll both need to sign. But she's mortgage free, not sure how it would affect mortgage but there's no problem with the owning itself.

Singlemummy_2

I meant implications with the mortgage - don't lenders ask if you intend to live there?

nervousftb_3

Wolu wrote: »

I do not think so. However, they might increase the interest if you say one of your guys are not intended to stay (convert personal use to buy-to-let)? May need expert on that

nonsense! they may well ask you if you intend to live there, but you wouldn't need a buy-to-let mortgage! lots of people have joint mortgages with parents etc where they don't all live together, i'm sure someone with better advice than this will be along soon!

CLAPTON

most mortgage lenders will allow such an arrangement
however, do be aware that if the house is jointly owned and one person isn't resident there then when you sell the non resident will be liable to capital gains tax on their share of any gain.

astep70uk

I'me busy trying to get a mortgage with my brother for the house I'm living in at the moment and one mortgage provider, the Co-Op, wouldn't even let us apply because we didn't live together

Singlemummy_2

astep70uk wrote: »

I'me busy trying to get a mortgage with my brother for the house I'm living in at the moment and one mortgage provider, the Co-Op, wouldn't even let us apply because we didn't live together

I wonder if you have had any more luck with finding someone to lend for you and your brother? It will be good to know when I start searching.

bingibongi

Of course there are implications - If you ever want to get a mortgage or other credit you would have to disclose the existance of this joint mortgage and it may reduce your ability to get credit.

If you own a house which you dont live in there may also be Capital Gains tax implications when it is sold.

Singlemummy_2

bingibongi wrote: »

Of course there are implications - If you ever want to get a mortgage or other credit you would have to disclose the existance of this joint mortgage and it may reduce your ability to get credit.

If you own a house which you dont live in there may also be Capital Gains tax implications when it is sold.

Sure its obvious you would have to declare it - I'm asking about implications to actually get the mortgage, i.e. do both parties have to live in the property?