Split mortgage with parents who live abroad

smiles80

Hi there, my parents have kindly offered to goes halves with me and my partner in buying a house in England.

I am Australian and my boyfriend is English, both living here & my parents are also Australian, living in Australia.

My questions are these:

1. How can this work????? Would they go through their bank for half of the funds and we go through our bank for the other half? Somehow it gets 'tied' together with a solicitor?????

2. Would we get caught out paying extra tax somehow?

3. Assuming my bank approves, are there any legal restrictions on me buying a property when I'm not a citizen? I have been offered a mortgage by my bank - just not quite enough.

Basically I just can't get my head around the logistics of this. My partner and I can't quite get on the property ladder ourselves so the help from my parents would be fantastic.

Any tips / ideas? Thank you!

herbiesjp

Do you want your parents to help with a deposit or actually be on the mortgage?

What figures are you looking at? Purchase Price? MOrtgage needed?

Bossyboots

Depending on the figures involved, it would seem most sensible for the parents to raise capital on any property they might have in Australia and make up the difference in cost between what you can raise yourself and what you need. You would then need to work out with them how or whether you are going to pay them back and how their investment is to be protected. This could be done by a trust deed or them being registered on the property as joint owners with you.

smiles80

At the moment my parents have a house in australia which is in their name but i am paying for half of all costs with the plan that when I want to sell my half, they will buy my half off me at current market value (nice parents eh!). It is stipulated in their wills only I believe, that I am to have half. So in terms of whose name is on the property here, its not such a big deal having them stated on the deeds from our perspective (perhaps it is from a legal perspective? I don't know).

We would be looking only for say a 180K house max (we are just starting on the ladder). A substantial deposit from them would be good but is it considerable for them to somehow get the money through a mortgage, from Australia? They have about 8 houses which they have bought and rent out (not fully paid off though). I don't want to create too much trouble for them by making them raise capital from their other houses.

What about my mortgage lender? What would they need to see? Who would contact who? (Eg. My parents bank/solicitor in Aust contacting my bank?). Sorry this is really confusing for me!

Thank you