advise a good lawyer or person who can help with weird mortage situation!

Fungiman

Can somebody advise on a VERY good lawyer based in London would can advise on property litigations/mortgages.

This is my situation, just so you can point me out to the right person:

I've got a question about a potential mortgage and which options I could have. If you think you can help I will book an appointment

The circumstances are these:
4 years ago my wife and I bought a property (jointed ownership, 50% each) for £305,000. The house was purchased cash, my parents in low paid for it and I got a personal interest free loan with them (the house contract shows only my name and my wife ones as jointed owners)
My wife and I recently separated and she wants to sell the house or eventually be out of the situation which means that I need to pay back my personal interest free loan to them (minus what I've paid so far).
The contract is very accommodating and fair. Nevertheless I'd like to investigate a bit further if there's a way for me to buy her out considering that house has already been paid for and I don't have any mortgage with the bank but only a private interest free loan drawn outside the UK
I still hope that my father in low would allow me acquire the property at the original price minus what I've paid at the moment of the sale. In this case I would need to borrow around £290k which with my salary of £35.,000 wouldn't be normally possible.
Considering the circumstances (private interest free loan and the lander is in Australia so 'officially' half of the house already belong to me) is there away for me to find a solution and borrow more money that what I normally could with a standard mortgage?

kingstreet

Regardless of the rest of the story, you simply cannot get a mortgage of £290k with an income of £35k.

cte1111

I can't see any way for you to borrow more than 8 times your annual salary.

OK you currently own half of a technically mortgage free property, but you also owe your father-in-law £145,000. I think you should sell the house, take your share of the equity and use it to buy a house of your own. You will then be free of debt to in-laws and both you and your wife will be able to move on.

Voyager2002

Plenty of lawyers would be willing to charge you for their time, but I don't see how any lawyer could help with this. Basically, you want to borrow far more than lenders would normally give you, so you need a mortgage broker who specialises in unusual situations and could perhaps introduce you to a helpful lender.

You talk about buying the house "at the original price". I hope you are aware that house prices in 2007 were generally higher than they are today.

You talk about a "personal loan" from your FIL: presumably this means that you agreed to repay him half the cash price of the house (152,500 pounds), and you didn't receive any actual money from him.

So you need to do two things: borrow about 152,500 in order to buy out your wife's interest in the property: and borrow about 137,500 to repay what is left of your debt to your FIL. Clearly that is not possible: so you need to establish whether your FIL is willing to wait for his money. Even if he decides to be helpful, and even if there is no record visible to lenders of your debt to him, you would struggle to borrow 150,000, more than four times your salary, unless you have a substantial deposit.

JQ.

I don't really understand why you need a lawyer. A mortgage lender will only take into account what you are asking them to do, which is borrow 8 times your salary with what would appear to be no deposit - if you bought 4 years ago it's unlikely the value will have increased. You will not find anybody prepared to lend on that basis. The current circumstances of your ownership are irrelevant. So, if the reason you need a lawyer is to try and force a sale to you it's pretty pointless as you can't afford to buy it.

I'd be more worried about being in negative equity. If the house is now worth £275,000 you could end up owing your FiL £7,500, plus you'll have to incur all the costs of sale of which your share could be £2,500 - this assumes the outstanding equity is £290,000 and the value of the house has dropped 10%, which is not unreasonable if you bought in 2007. It might be worth getting some EA's round to find out what it's really worth, which may help in your decision making process.

I agree with the above, sell the house and buy something affordable.