How to help my brother onto the property ladder?

maninthestreet

In a year's time, when your brother and his girlfriend have split up, neither of them can afford to pay the mortgage on their own so don't want the property, and they can't find a buyer for it, the lender will be chasing you for the mortgage payments.

Mini_Bear

If you want to invest in property OP could you not use your ££ as a deposit and get a btl in need of doing up etc? its very admirable to want to help your brother but really, as they are a couple they should be able to stand on their own two feet. now if your brother was single you could buy a house with him and get a lodger in to cover your side of rent and any associated costs. that could be profitable. I am struggling to see how you are going to "make" money. Particularly if your brother and his partner stay put for many years. You cant suddenly call in your loan. And equally i think your brother would be foolish to take ££ off you and have that millstone round his neck.

Jowo_2

Why can't two healthy working adults afford their own property without the assistance of a gift? The usual route to homeownership is to get into the discipline of saving for a deposit and then buy a house that is affordable on current income levels.

BitterAndTwisted

It's complicated. You could loan your brother the deposit and that deposit could be considered as buying a percentage of the property. Or you could make an agreement that the loan would be paid back in full with x percent as interest once sold. Your brother being responsible for making the mortgage repayments and having a live-in girlfriend could be seen later as her having a stake in the property as well. There are probably other issues which I haven't considered as well because like I said, it's complicated. People's circumstances change and when they do people can behave in extraordinary ways which you cannot anticipate.

You need to seek competent legal advice before you go any further to have the options and the consequences explained to all three of you before you contemplate going down this route.

I wouldn't do it.

laughingcow81

Perhaps if you want an "investment" you could buy a property and let it to your brother and his partner, thus getting a return on it?

However this obviously means you won't be helping your brother get on the housing ladder.