Mortgage with daughter & partner

Ids61

We have had a idea which I would like to know if it is realistic.We were thinking that if we sell our property, and buy a larger property with our daughter and her partner. They currently rent.
We would have a deposit of around£140000 to 160000.
Our joint income would be 70,000 - 80000. This is can be proved as we are employed.Our Daughter and her partner have a excellent credit history. My wifes and mine is poor, although all debts would be settled upon sale of our house.To buy a large enough house for 4 adults and 2 children we would need to buy a house in the region of £400000

Any advice much appreciated.

GMS

Ids61 wrote: »

We have had a idea which I would like to know if it is realistic.We were thinking that if we sell our property, and buy a larger property with our daughter and her partner. They currently rent.
We would have a deposit of around£140000 to 160000.
Our joint income would be 70,000 - 80000. This is can be proved as we are employed.Our Daughter and her partner have a excellent credit history. My wifes and mine is poor, although all debts would be settled upon sale of our house.To buy a large enough house for 4 adults and 2 children we would need to buy a house in the region of £400000

Any advice much appreciated.

You mention poor credit. Why is this? CCJ's? Defaults? Mortgage Arrears?

You may not be able to get a new mortgage at all so you should speak to a good broker first to see if there is a chance.

Thrugelmir

On the basis that you could raise the finance.

Would you be in a position to have repaid a significant proportion of the mortgage before you and your partner retire? As I assume household income will signficantly drop at that point.

Ids61

Thrugelmir wrote: »

On the basis that you could raise the finance.

Would you be in a position to have repaid a significant proportion of the mortgage before you and your partner retire? As I assume household income will signficantly drop at that point.

We are in our late forties so still have a good while until retirement.

Thrugelmir

Ids61 wrote: »

We are in our late forties so still have a good while until retirement.

A 25 year mortgage term will take you into your 70's.

After 15 years on a repayment mortgage , 60% of the original capital balance is still owed.

mackemdave

What would happen if at sometime in the future your daughter and her partner split up,would you be a position to buy his share?

Ids61

Thrugelmir wrote: »

A 25 year mortgage term will take you into your 70's.

After 15 years on a repayment mortgage , 60% of the original capital balance is still owed.

Very true but if you look at the figures renting at the moment costs over 800 ,with a mortgage with all we would all be be better off,andthe capital could reduced faster by over payments.It seems sensible to
us that we repay our debts,realise the equity,and then help our family to use the money to benifit all.we are both currently paying council tax,electric , gas etc etc.I think it's a very sensible idea, but don't think any mortgage company will go for it.
Thanks for Your help

Ids61

mackemdave wrote: »

What would happen if at sometime in the future your daughter and her partner split up,would you be a position to buy his share?

Very good point, and some thing we have thought about, same situation if we split, but we would need to legally address all possibillties.Our daughter and partner would not initially have a large percentage ownership of the property,this would change over time.hopefully eventually if neccessary all would have an equel stake and enough money to purchase outright if circumstances needed.

CLAPTON

Ids61 wrote: »

Very good point, and some thing we have thought about, same situation if we split, but we would need to legally address all possibillties.Our daughter and partner would not initially have a large percentage ownership of the property,this would change over time.hopefully eventually if neccessary all would have an equel stake and enough money to purchase outright if circumstances needed.

ok
so suppose after 1 year the boyfriend wants out
could you refinance the mortgage or would you have to sell the property?

getmore4less

GMS wrote: »

You mention poor credit. Why is this? CCJ's? Defaults? Mortgage Arrears?

You may not be able to get a new mortgage at all so you should speak to a good broker first to see if there is a chance.

https://forums.moneysavingexpert.com/discussion/2861528=

Credit history looks a bit of a mess to me.

Ids61

getmore4less wrote: »

https://forums.moneysavingexpert.com/discussion/2861528=

Credit history looks a bit of a mess to me.

Credit history is a bit of a mess, but through circumstances. Our problems however would be satisfied as all our debts would be paid off.
Our disposable would be significantly
more. Thanks for your help