Buying 1/2 Parents house and extending

pogie2

Hi

Not sure if anyone can give me any advice on this but i am looking at buying 1/2 of my parents house and extending it so that we can all live together.

We are planning on clearing my parents mortgage and having a mortgage just in mine and my husbands name. We have spoken to a mortgage adviser and this is possible.

I just need to know if we can own 1/2 of the house and have a mortgage on it when my parents own the other half.

Thanks in advance for any advice you can give me.

Doozergirl

Can't be done like that.

If you have a mortgage then everyone named on the deeds has to have their name on the mortgage. Having your name on a mortgage makes you jointly and severably liable for the debt.

If you look at it from a lender's perspective, they are simply not interested in fighting with another party over the house. If you don't pay the mortgage and you parents are free from any liability then the house can't be repossessed. Your parents are therefore as responsible for the debt aas you are = mortgage company can repossess when no-one pays the mortgage.

pogie2

Is there another way round that anyone knows of as my dad can't be on the mortgage due to bad credit but obviously i can't just suddenly have their house and if i have to buy it in full will we have to pay any duty. The house is worth about £200k and we would be buying for £120k.