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My Own Property + a Joint Property
dan_1983
Posts: 3 Newbie
Good Afternoon Everyone
This is my first post after being a avid reader of some posts, but hoping i can be given some advice.
I purchased my own home (a quarter home) in January 2010. I was with my girlfriend at the time of purchase however we had not even considered moving in with each other.
My girlfriend has now been living with me for about 4 months (its amazing how they do that isnt it
) and its going great so the next step is going to be to purchase our first house together. We will not be looking until January 2012 time.
So my question is this. Obviously my current property is listed in my name and so is the mortgage. The property that we would buy together would be a joint mortgage. How does it work by using my current property towards a deposit to the next property (providing there is equity in the property i presume) I hear a lot of "its good that you're on the ladder" so i am hoping this is one of the reasons!
Thanks in advance.
Dan
This is my first post after being a avid reader of some posts, but hoping i can be given some advice.
I purchased my own home (a quarter home) in January 2010. I was with my girlfriend at the time of purchase however we had not even considered moving in with each other.
My girlfriend has now been living with me for about 4 months (its amazing how they do that isnt it
) and its going great so the next step is going to be to purchase our first house together. We will not be looking until January 2012 time.So my question is this. Obviously my current property is listed in my name and so is the mortgage. The property that we would buy together would be a joint mortgage. How does it work by using my current property towards a deposit to the next property (providing there is equity in the property i presume) I hear a lot of "its good that you're on the ladder" so i am hoping this is one of the reasons!
Thanks in advance.
Dan
0
Comments
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You need to see a mortgage broker for some advice. My knowledge is limited but I think your 'chllenge' will come from the multiples you can borrow with your GF. Basically if you could borrow 4 times your salary for your new place they will look at how much of the 4 times you have already borrowed for your other place and remove that amount from the new mortgage...0
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"Being on the first rung of the property ladder" generally means that you own a first, small property, which you sell for more than you bought it for, using the equity as deposit for your next, bigger/better one.
However, there is one big IF: this only works if the market is genuinely a "ladder", with rising prices... That isn't necessarily the case right now. What you'll be able to afford all depends on how much you can get for your "quarter home" (do you mean shared ownership or is it a house with 4 entrances?) and how much money you manage to save in the meantime, as well as on yours and your GF's joint incomes.
If you don't want to sell the first house, then it's a different kettle of fish altogether. Are you looking to rent it out, with all the pitfalls that that entails? Not an easy way to make money...0 -
You sell your current house and pay off any outstanding mortgage. What you have left becomes your deposit for the new place.0
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