Gifted equity & shared ownership....

RedTulip

Hi, looking for a bit of advice please.... and sorry in advance for such a long post....

My partner and I currently live in the house which used to belong to my grandparents. The house was left to my mum, her brother and sister in my grandmothers will. The brother has since died, leaving 3 (adult) children. Whilst I do not know the ins and outs of the will, I would guess the children are still entitled to their share of the house.

The original idea was we would be here for 6 - 12 months before the house was sold, either to us or someone else. We're still here and now looking at our options.

I will be gifted half of one third of the equity (around 15k) We are currently looking at buying out my uncles children (around 30k) first, and having a SO with my mum and auntie.

We would therefore be looking for a mortgage for the 30k to buy the children out.

So, to my question.... would we be able to put my mums and aunties share (around 60k) down as a deposit for the 30k mortgage, they are happy for us to do this? Another twist to the tale is my credit rating is pretty shot at so the 30k would have to be in my partners name. We would be looking at taking the 30k out over only 5 years, or as short a term as possible, and to clear it as quickly as possible, before taking out another mortgage for the remaining value of the property once I have sorted my credit rating out.

Does anyone know how easy/difficult it would be for us to do the above?

Thanks in advance for any help/advice/suggestions.

RT x

Meeper

Shared Ownership is the name given to the specific scheme of home ownership which is made available to people who are not able to get on the housing ladder themselves.

What you propose is not Shared Ownership, it is simply ownership by multiple parties. I appreciate that might not make much sense, but when you talk about Shared Ownership you are talking about something very very different to what you want.

You have a number of criteria which are complicated to fit together.

I would recommend visiting a local independent mortgage adviser who will be in a better position to pull all of the different elements together having taken all of your circumstances into account.

RedTulip

Hi Meeper,

Many thanks for your reply and explanation... we really are at the start of our journey and we really appreciate advice from people such as yourself.

We will follow your advice and speak to a mortgage adviser.

Thanks again

RT

RedTulip

Well.... further to the above things have moved on a bit...

We went to a whole of marker broker on Tuesday to discuss buying one third of the house solely in my partners name... we're now in the process of applying for an amount to cover 2 thirds in both our names with the remainer being used as our deposit... this despite my abysmal (or so I thought) credit history/rating.

We spoke about my history and I showed the broker my Experian and Equifax £2 reports, showing a (fully satisfied) default from Lowell (mobile phone - took out for an ex... another story) and the default from Hillesden (?) Securities, showing as partially satisfied - this is as it was settled on a f&f at a lower amount. It also showed two late payments within the past 2 years to hsbc which was down to - I think - money not being paid in to my account on time by the dmp company due to bank hols etc...

The broker was extremely up beat about it all when checking through my files, she explained as I have 2 store cards that were not included on my dmp and have always been paid on time with no missed payments, along with two fully paid off loans that were also paid on time with no missed payments I would be seen as a slightly better risk.

Got a phone call today from our broker saying the lender she is considering accepts slightly adverse credit histories and so the rates are slightly higher, but not stupidly so, and they are not interested in defaults over two years old (which mine are) furthermore are not interested at all in the Lowell one as "people take contracts out for other people all the time" (?!)

I am obviously over the moon that things are moving so quick and even in our situation we appear to be well on our way to getting things sorted.

Without putting a dampener on things though, does the above sound 'right'? I have every confidence in the broker, she came highly recommended and was very very helpful, but I can't help but worry that something is going to crop up that will quash all our hopes.

Sorry for the long post! Thanks in advance for any comments people may have