Can I get a mortgage to buy half a house?

cb94uk

Hi everyone

I need a bit of advice, my boyfriend's parents own a house which isn't their main residence. We'd like to buy half of the house, am I likely to be able to get a mortgage lender to provide us a mortgage when it's only for half and not the whole house?

Senior_Paper_Monitor

Not as such - all eventual owners on any mortgage (and financially responsible for it) and on the deeds. The house could be split as 'tenants in common' in any ratio(s) you wish. Some lenders will not allow nore than 2 owners (but most up to 4).

The mortgage lenders security will be on all parties (joint and several) and 100% of the property.

The slight exception is there are a couple of quite slick options with lenders who have a joint equity scheme with parents as joint equity partners (but the conditions are only slightly similar primarily in that the parents bequity a second charge holder - I'm also not sure without looking them up whetehr this can apply to a property being purcahsed from the parents themselves).

Complicated huh ?

All parties need to take proper advice before proceeding with anything like this arrangements.

cb94uk

Thank youu for your reply, it was very helpful. I thought that this may be the case. We're a little stuck, we want to buy the whole house but can't afford it right now so we were hoping to just buy half and then the other half in a few years. Is there any other way of doing this?

Senior_Paper_Monitor

Not really of the top of my head, but you could use a deed of trust to establish right to buy subsequently (for any party you chose).

Doable - but specialist advice - not for a web forum to solve.

antrobus

cb94uk wrote: »

Thank youu for your reply, it was very helpful. I thought that this may be the case. We're a little stuck, we want to buy the whole house but can't afford it right now so we were hoping to just buy half and then the other half in a few years. Is there any other way of doing this?

You could buy the whole house. Pay for half of it by means of a deposit + mortgage from a lender and pay for the other half by means of a loan from the parents in question. And then repay the parents when you're in a position to do so.

That's certainly possible. Whether it's actually a practical possibility is something else. As in, I don't know how a prospective lender would view such a proposal. But you can only ask.

cb94uk

Thank you both for you replies, that's another thought that we had in mind but we weren't sure if there would be any tax implications with having a loan from his parents? And also if there would be any stamp duty implications?

Senior_Paper_Monitor

Yes there are potential tax implications all the way through this (one of the reasons that any possble structure needs carefully consideration). There may well be stamp duty implications depending on the valkues involved and the structures used.

I repeat "Doable - but specialist advice - not for a web forum to solve".