Buying a shared family home?

essexmjj

Hi some tips and advice?
I own am one of 6 owners of a inherited family home...roughly the valuation comes in at between 240-260k.
I currently living there and aim to one day buy it if possible, I am looking at options at buying a share of some of my siblings possibly more if possible any tips on the best ways to go about this? I realise if I only attempt to buy a percentage of their share i could obviously get a good value personal loan for now....Ideally with the main aim at buying the entire property in the future... could i then use my stake as the deposit downpayment?

any tips or advice...at their is no pressure to sell up from siblings but just looking at options for now

Ta

mick

CLAPTON

you haven't mentioned your income but a mortgage is the simple answer sufficent to buy out your siblings

Apples2

£260k / 6 = £43,333

Give the other 5 siblings £43,333 each to buy them out.
Would be best to do it all in one go, if house prices move, it could get difficult.

Maybe one or more of them wish to retain their inherited investment in case prices rise.

I wouldn't take for granted acceptance of a personal loan.

bouncydog1

You would have to sound them out first of all to see if any of them want to sell - they might all be planning the same as you!

If they are in agreement then you should agree on say, 3 independent valuations and average them to get a reasonable expectation of what the property will sell for.

Once you have this figure you can explore what options might be available. If only one wants to sell their share then I suspect the others might also want the opportunity to buy and you could end up in a dutch auction.

It is too pre-emptive to consider how you could finance without knowing all of the facts.

essexmjj

Thanks for replies people! much appreciate....well 2 of them are interested in either selling all os part of their share for now others are just ok with us being there looking after it etc... ideally we would like to buy it however at present i probably could not get enough of a mortgage to buy outright other 5....we are now weighing up is it worth getting enough to buy 2 outright say 40k each 80k......or buy a share of everyones....therfore we increase our share for future sale years down line and others get lump sum now....and nestegg for later
anyway we all have to chat this over in detail asap....cheers again

jonesMUFCforever

To get a mortgage you will have to own the whole house not a share.

ChristinaWilson

That is a tough situation. I would say if your siblings are okay with it to possibly pay them out for their share of the house. Then you could outright own the house for yourself. Also, if you did do this. I would pay them all at the same time, as the price of the house could possibly flectuate and things could get very tricky for you.

essexmjj

So to clarify you cant get a mortgage as i am not down as the sole owner?....if i was down as the sole owner the i could either remortage and privately give them their respective shares, i think it would be best to buy out 2 that need the cash for now....as long as i can secure a mortgage deal...then at least they get money they need others still have their investment and we get a bigger slice of the ownesrship as a whole...i will look into mortageges and possible loopholes to get one

CLAPTON

basically the people on the mortgage need to be the people on the deeds.
depending upon who is living there now and what the value of the house was when inherited there may be capital gains tax to pay by the sellers.

essexmjj

well i am living there now....and happy to stay living there as for forseeable future as far as i understand just my eldest sibling is on the deeds....therefore could i get a mortgage to buy say an 80k share in the home or would mortgage companies not like this? any views appreciated....i realise I am going to have to speak officially with mortgage adviser!

Caz3121

essexmjj wrote: »

well i am living there now....and happy to stay living there as for forseeable future as far as i understand just my eldest sibling is on the deeds....therefore could i get a mortgage to buy say an 80k share in the home or would mortgage companies not like this? any views appreciated....i realise I am going to have to speak officially with mortgage adviser!

The difficulty with this is will appear
a) your eldest sibling is the sole owner of the house
b) you are raising a mortgage for £80k to purchase the house from them
c) you will then have the deeds in your name, an £80k mortgage and be the sole owner

...what happens to the share for the others, has the deed change not happened yet to reflect that you are all part owners?