Son to 'buy in' to my house..what do we do?

2Papillons

I own my own home outright. My son lives with me.
I am adding him into the Deeds as at present they only have my name on them.

Now...he wants to 'buy into' the house by giving me half of the value of the house. So, he wants a mortgage for that.

That is where we have no idea how to progress. What does he do? Is it a re-mortgage application for him? Does he just go and ask for a first time buyer mortgage....the house will still have 50% equity on it...does he need a deposit ( I have heard about me 'gifting' him the deposit).

We have looked everywhere and can't find anything in our situation.

Can anyone help?

beecher2

I think you will have to get a joint mortgage - I imagine it'll count as a joint re-mortgage with 50% deposit. I'd go to see a mortgage broker for advice.

Annisele

Why do you want to do this? Is it because you need capital, because your son wants "a foot on the housing ladder", or for some other reason?

I ask because there might be another way / a cheaper way to achieve what you want.

GMS

If you are to remain as an owner of the property then it would need to be a joint remortgage with a transfer in of equity.

Speak to a good broker to see how to proceed

2Papillons

Basically, he will have this house anyway, it's a way of raising capital for both of us.
I am 55 years old and not going to do Equity Release.
I think a Mortgage Broker is the way to go...just wanted to ensureit was possible to do.

Thanks people..

getmore4less

Have an exit plan for all eventualities.

especialy if one of you wants out of this house.