Three way mortgage

joytigre

We (married couple, 2 young kids) are thinking about buying a house in partnership with my brother in law. He's a naval officer, so earns a reasonable salary but doesn't need accommodation for most of the year, especially as he's planning to spend holidays abroad. The idea would be that he gets a place to stay in London when he's here & an investment with a decent return when we resell or buy him out.. and we get to live in a bigger or nicer place than we'd normally be able to afford.

Is this possible? What do I need to look into?

opinions4u

Is it possible? Yes.

Will it be straight forward to get the application throught? No, so I'd use a broker.

Longer term, what happens if he gets a shore post and wants to buy his own place, but is hindered by his mortgage with you? This could lead to disagreements and, potentially, a request for you to buy him out or sell up.

Personally I'd steer clear of the idea.

jockosjungle

Definitely possible but I don't think a good idea. My concern for you is that you intend to use the BIL money to afford a better place than you could normally afford. What if he gets married? Decides to leave? Gets posted ashore in the UK? You'd have to either sell the house or buy him out, you can't afford to buy him out so are stuck with downsizing the house

R