Extend mortgage..to pay off Brother's mortgage?

another_casualty

Hello all

Like many others,I am struggling big time to keep up with payments etc.

My brother (58) has moved in to my flat and I /we thought about
joining up,and when he sells his flat ,my mortgage hopefully will be paid.

His flat has been valued at £220,000 (1 bedroom in Twickenham)
on market for approx 4 months. He owes £70,000

Me?(48) My property (2 bedroom maissonnette up the road from him)
valued £250000. I have 90,000 mortgage (and a home moaner mortgage
£20,000 approx)ugh. The only good thing ,is that it's positive equity.

My salary £22,000 ,and I have unsecured loan/credit cards£15,000 total.

Obviously ,things are slow on the selling side of things.

Now for the stupid questions: Is there any chance that I could borrow additional cash£ 70-80,000 and pay off my brother's mortgage?
(my equity would be alot more,and I would sign half of everything to him). Or should he let it out?
Things are bad for us both at present,and now that the chuckle brothers are in power,it will get worse.
If I was going to be allowed the additional borrowing ,I would let his flat out to pay mortgage initially ,and when market improves ,sell it and pay back what I owe. Please could you advise? Thanks:o

Yorkie1

You are seeking to take out credit of £180K (£90K plus £20K plus £70K) - which is well over 8 times your salary of £22K. That in itself I suspect will mean what you suggest isn't possible. The unsecured £15K debt you have will only make matters harder as that will affect any affordability calculation.

My immediate reaction is that the preliminary maths don't add up, even before you consider the other pros and cons of your plan.

beecher2

You're already in debt at over 5 times your salary, so no way will you be allowed an additional 70-80k. Frankly I'm shocked that you think it'd be a possibility! Tell your brother to lower his asking price to the point where it will sell, pay off all your combined debt (if he's happy with doing that) and take it from there.

edit: on your other thread you say you're losing your job at Xmas, so please don't waste valuable time in attempting to increase your debt. Rather, try to be realistic about how to be debt free, which does seem possible if you're realistic about how much your brother's house will sell for.

another_casualty

Many thanks for your swift replies.Yes,I know I asked the impossible:o
Yes ,I do agree that my brother's (or should that be the 2 estate agents )
valuation is a little on the high side.
Telling him is another thing:eek: (alto' he has share of freehold,
the small bedroom is holding him back)Is £200,000 more realistic?

I know that I should overcome my fear and finish that soa form(other post)

I believe that it's for the best for him to sell asap.
If sale happens I know I lose half equity,but I'd be on the right road
towards being debt free. I'm hoping that I don't lose my home. How much do you think trhat I should ask my brother for?
It was going to be £125,000(half value of my property). Would imagine it would be less now.
More advice please:)

Yorkie1

Either I am being particularly dense this evening or you are not making yourself clear.

Your brother owns his own flat, which is on the market, and has a relatively small mortgage outstanding.
You own your own flat, which is not on the market, and has a slightly larger mortgage outstanding.

Why do you think you would lose half equity if your brother sells up? Why does it impact on you whatever price it goes for? Why should you ask your brother for £125K?

another_casualty

No ,it's me not making myself clear.
Yes, it's true that my brother has a small mortgage on his flat.
What we were thinking was that if he got as near to asking price as possible, he could payoff his mortgage. Then with the remainder,
he could payoff my debts/mortgage . He has been living with me for approx 6 months. This would mean he would be buying into half of my property.

Sorry if I'm making things sounding overcomplicated.

If there is a better idea please could you advise?

Thanks

Thrugelmir

Your idea makes sense. As both of you will ultimately be debt free.

another_casualty

Thanks for that. I've been thinking so hard about the correct way
to go about things. The immediate hurdles I have are, job loss around xmas,moubting debt,and my brother refusing to lower the price.

Am I doing the right thing asking for £125,00 to clear everything?
Looks like I'll end up with a small mortgage the way things are going.
Some people say that I should keep seperate from my brother , but I've accrued too much debt for that imho.
Please could I have some more views on this? Thanks

another_casualty

Any more ideas?

Thrugelmir

another_casualty wrote: »

Any more ideas?

You need to come to mutually agreeable arrangement with your brother to make the concept work.

another_casualty

Thrugelmir wrote: »

You need to come to mutually agreeable arrangement with your brother to make the concept work.

This is true. The main problem I forsee , is that I think he should
reduce the asking price by another £10,000. (He doesn't like being told)
Of course,this would mean I take less from him and end up with a small debt left. The flat was originally priced at £235k,then reduced to£220k
If someone bid £200k ,I would take it. My brother is stubborn:mad:
The good thing about his flat: huge garden/share of freehold
Bad thing: bedroom too small

Cheers