Where do I stand, boyfriend, his dad and sis buying a house

Acc72

Has the house in question been inherited by the family from the grandmother ??

I can see problems ahead with the sister I'm afraid .......

If you are to "buy the sister out" in the future, you need to get the property valued now and then valued again at the time of the buy out.

In the meantime I would still not contribute to any capital improvements to the property - just soft furnishings and personal effects.

You also need to set out the ground rules - eg. will the sister have a key, can she just pop round when you are not in etc. etc. ??

As has been suggested before, the safest option would to have a tennancy agreement and to pay rent.

louise_1981

the house is not inheritance, it is being bought for someone else

barnaby-bear

louise_1981 wrote:

Ill clarify.
I personally have not got a penny e.g. money in houses, or savings. I have an ok paid full time, permenant job (c£11,000), but as i said in my first post I am expecting to go back to teacher training in September and therefore will have no income to cover any mortgage that I could take out now.
Louise

Normally I wouldn't recommend mortgaging with job uncertaintity etc - bu on current income £44k mortgage perfectly feasible, especially if you are doing it jointly - the repayment on that at 5% is £260 teacher training loans, bursaries, career development loans could cover that as could any min. wage job. If paying rent anyway I'm guessing £260 not silly money

Sister wants slice of action, you could be paying towards mortgage and owning a share. Split the equity to reflect his deposit. Does your boyfriend want to work towards your life or financially establishing his sister?

I can't see why she'd let you buy her out - unless it's in her interest i.e. you overpay.

How much is the house, mortgage, deposits? Would a 44k share buy you in - £260 pcm payments reasonable?

lynzpower

louise_1981 wrote:

the house is not inheritance, it is being bought for someone else

who?

barnaby-bear

lynzpower wrote:

who?

I think she mistyped FROM

louise_1981

sorry from!!! it is being bought from someone else

lynzpower

LOL thank god for that! Even more reason to steer well away!

louise_1981

there is no mortgage at the minute. the house is £100,000 three bedrooms. oh has put down £50,000 with dad and sis £25,000 each (all in cash)

Alan_M_2

The problem I see here is perspective, your BF, his sister and father probably view all this as actually doing you a favour, "Getting a roof over your head", "Another rung up the property ladder" and will not have considered the ramifications of ownership/contribution should things go awry.

I wouldn't be surprised to find them a little put out if you (quite rightly) brought up your concerns, which you absolutely must do.

Dealing with family and business (which a house purchase is) can be quite difficult as there are often conflicts of interest.

In as delicate a way as possible you need to make it very clear what is and what isn't reasonable, you need to find out exactly what the motives are behind the sisters share and the long term proposal for that share. You need to agree now what will occur if you decide to go your own seperate ways.

If you are paying a mortgage and a contribution to the improvement and upkeep of the property, then you will own a percentage either independantly or combined with your BF's share, get this agreed and in writing before moving in.

Otherwise rent as many have suggested above.

Whilst the family see themselves as doing nothing here but helping, it's very easy to overlook the ramifications of a break up, a families trust is absolute and alot of these agreements will be assumed, but effectively you're not family (no offence) and if things did go wrong you'd probably find the wagons rounded up whilst you're stood on the outside looking in.

barnaby-bear

louise_1981 wrote:

there is no mortgage at the minute. the house is £100,000 three bedrooms. oh has put down £50,000 with dad and sis £25,000 each (all in cash)

Hmmm - so for a 25% share you'd need say 30k to cover fees - a mortgage you could get on your salary and pay even on loans bursaries probably less than £200pcm - you're supposed to be a couple. Why on earth will sister let you buy her out after 18 months if she's ignoring you, if she doesn't will OH sell up take equity and cost in fees and move (i.e. with fees better off renting for 18 months) -

You could buy a home together if OH wanted you too - ok with him having bigger share. Why isn't he enabling this? A 25% share would cost you less than £200 pcm.

Not being harsh but does this guy have long term future plans for you as a couple 'cos at the moment he's making long term plans to saddle himself financially with his sister.