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Comments
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Are you happy to be forced to sell your property after 12 years to repay your brother, possibly leaving it quite hard to buy a new place if you don't have a steady job then or there's massive house price inflation?
Or is it your plan to try to repay your brother the sum he loaned you in this period so you can continue living there?0 -
I've probably misunderstood one of your points, however if house prices go down by 30% my brother would still get £14,000.
Unfortunately that's not the case.
Let's say the house costs £100k, so your brother has put up £20k, you have £10k and have borrowed £70k.
If house prices drop and you sell your house for £70k, that would go to the bank (minus any capital repayments you had made). Your brother would be entitled to 20% of anything left over (which, if you hadn't paid any of the capital off, would be nothing). The bank won't care that your brother doesn't get his money back, they will want their money first!0 -
Some good points, my brother has outlined some terms he would like included within the contract/house deeds to better protect his investment, is this possible to include?0
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You'd have to discuss with the mortgage lender I think.
I suspect your brother's intentions of "investment" are not possible in the current housing market.0 -
Some good points, my brother has outlined some terms he would like included within the contract/house deeds to better protect his investment, is this possible to include?
Depends what they are.
He won't be able to have a priority equal or higher than the mortgage lender. Even if you gave him the power to force a sale, the mortgage lender would have first dibs on the proceeds.
If he wants a certain percentage of an equity after the mortgage is accounted for, you could accommodate that.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Its all went a little pear shaped with the bank and my chances of buying this house are now very slim, the bank are unhappy with my brother registering a charge and they want to make him equally liable for the debt which I don't want and neither does he so it looks like curtains for me.0
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See a whole of market broker. You need a lender who will allow a family member to loan you a deposit, there will be one out there its just a question of knowing who will look favourably on this.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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I may be wrong but if your brother is only registering a charge to secure his interests after the bank etc have recovered all their monies I honestly cannot see the bank having a problem with this., perhaps arrange a meeting and explain the matter fully, I think your bank may be concerned that your brother will have the same rights as the bank should you fall into financial difficulty.0
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Interesting points, certainly worth further investigation.0
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Interesting points, certainly worth further investigation.
Shaz77, is this a BTL property or one for you to live in? Also, is it a house in NI (think I remember you on the NI thread), if so be very careful buying now as prices are still dropping.
Why not wait and buy one cheaper in a year or two - yourself without your brothers help, in the long run it would prove a better decision???Groceries challenge
May - £70 so far:beer::beer:0
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