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Buying into partners house
Lil_Me_2
Posts: 2,664 Forumite
Hello! I'm looking for some advice about buying into my partners property.
Background - House was bought from plan in December 2007 for £205,000. Extras included £2,500 for carpets, £4,000 ish for fridge, freezer, washing machine and dishwasher. Plus stamp duty etc.
Money wise his parents own 3/5 of the house, partner has a mortgage for 2/5 of the house. Everything was split 3/5-2/5. OH is the only one named on the deeds with a separate contract.
OHs tracker deal is now up and I'm in a position where I can get a mortgage with him (I was temping in 2007). His parents would like to keep a 1/5 stake in the house (our deposit basically) which will be rent free and covered by a separate contract.
We don't know the current value of the house, but expect it to be in the region of £200,000. I'm not sure what his parents will do if the valuation comes in much below £200,000 as it means that they will be quite out of pocket if so, but they are reasonable.
So most of my questions are around what everyone classes as fair bearing in mind that we owe his parents for helping us get on the ladder and whether there are any hidden costs involved that I need to know about! I don't want for his parents to be significantly out of pocket, but I want everything to be done properly too.
We have a meeting in a couple weeks with an independent mortgage adviser and I'll be honest that I don't know what to expect! Mortgage wise we shouldn't have any problems. We both have good permanent jobs between us earning over 50k. The only debt that we have are in my name - a car loan for 8k and a 2.5k student overdraft.
Am I right in thinking that I won't have to pay stamp duty?
Should I be offering up a proportion of the extras (carpets, appliances) or as they're integrated and now part of the house will the valuation cover it?
Are we remortgaging or is it classed as a first time buy?
Will we have to pay for an official valuation, and roughly how much if so?
Anything else anyone can think of??
Thanks for any help
Background - House was bought from plan in December 2007 for £205,000. Extras included £2,500 for carpets, £4,000 ish for fridge, freezer, washing machine and dishwasher. Plus stamp duty etc.
Money wise his parents own 3/5 of the house, partner has a mortgage for 2/5 of the house. Everything was split 3/5-2/5. OH is the only one named on the deeds with a separate contract.
OHs tracker deal is now up and I'm in a position where I can get a mortgage with him (I was temping in 2007). His parents would like to keep a 1/5 stake in the house (our deposit basically) which will be rent free and covered by a separate contract.
We don't know the current value of the house, but expect it to be in the region of £200,000. I'm not sure what his parents will do if the valuation comes in much below £200,000 as it means that they will be quite out of pocket if so, but they are reasonable.
So most of my questions are around what everyone classes as fair bearing in mind that we owe his parents for helping us get on the ladder and whether there are any hidden costs involved that I need to know about! I don't want for his parents to be significantly out of pocket, but I want everything to be done properly too.
We have a meeting in a couple weeks with an independent mortgage adviser and I'll be honest that I don't know what to expect! Mortgage wise we shouldn't have any problems. We both have good permanent jobs between us earning over 50k. The only debt that we have are in my name - a car loan for 8k and a 2.5k student overdraft.
Am I right in thinking that I won't have to pay stamp duty?
Should I be offering up a proportion of the extras (carpets, appliances) or as they're integrated and now part of the house will the valuation cover it?
Are we remortgaging or is it classed as a first time buy?
Will we have to pay for an official valuation, and roughly how much if so?
Anything else anyone can think of??
Thanks for any help
0
Comments
-
You should buy in at the market rate.
get a free valuation from a few EA and do your own market research to come to some agreement on current value.
Forget the extras they are all part of the house now and worth little second hand and looks like they overpayed at £4K for 4 white goods when you could get them for under £1500 new.
Offer to pay reasonable legal/mortgage fees as a gesture.
One thing to get clear is the costs of any improvements are they paying 1/5 of those or just getting the benifit(if any) on sale.
Tough on the parents if their investment has gone down if they did not want that risk they should have done it as a fixed interest free loan.0 -
getmore4less wrote: »You should buy in at the market rate.
get a free valuation from a few EA and do your own market research to come to some agreement on current value.
Forget the extras they are all part of the house now and worth little second hand and looks like they overpayed at £4K for 4 white goods when you could get them for under £1500 new.
Offer to pay reasonable legal/mortgage fees as a gesture.
One thing to get clear is the costs of any improvements are they paying 1/5 of those or just getting the benifit(if any) on sale.
Tough on the parents if their investment has gone down if they did not want that risk they should have done it as a fixed interest free loan.
Thanks for that. Yes I thought that market rate is the fairest option. Just like if the value had gone up I would have paid out for the higher rate!0
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