Taking 'equity' out of an unsold property...

Cooketh77

Hi guys

Like a lot of people at the moment, I'm struggling financially. Luckily though I have my health and I have a 'stable' job, even if it is below average wage.

I am entitled to a 30% share of my mum's house if she were to sell it, so I wondered if it is possible to 'take out' that 30% on whatever the house would be valued at, and put it towards another property of my own, without her having to sell her house.

Thoughts?

dzug1

A mortgage on that 30% would do it.

poppysarah

Cooketh77 wrote: »

Hi guys

Like a lot of people at the moment, I'm struggling financially. Luckily though I have my health and I have a 'stable' job, even if it is below average wage.

I am entitled to a 30% share of my mum's house if she were to sell it, so I wondered if it is possible to 'take out' that 30% on whatever the house would be valued at, and put it towards another property of my own, without her having to sell her house.

Thoughts?

Does she want to sell it?

I think "taking equity" needs to be explained to you.

It's cash only if the house is sold and the money raised from the sale is more than any debt owed on it.

It could all go quickly wrong for your mum if she allows you to "take equity" out of her house whilst she's still living in it.


Houses are NOT cash machines

p00hsticks

dzug1 wrote: »

A mortgage on that 30% would do it.

I'm not sure how easy this would be to get though , as, with someone else owning 70% of the property, i would imagine that there would only be limited actions available to the mortgage company in the event of the mortgagee defaulting on the payments. I guess that the owner of the 70% would need to give their permission and/or be involved.

theartfullodger

Mum would be barking mad to agree to you having a mortgage on her home... if you don't pay the mortgage, lender repossesses and voila!! Mum out on her neck!!!


You're "struggling financially" (lemme guess, you've a few debts...) and want to borrow some more?? Errrrrr... if so, bad idea...

Hope she's reading this thread and seeing what is planned for her ...

Cooketh77

Perhaps I should explain... Her house is paid for, apologies for not explaining that. It was just a thought I had thinking I could take out my 30% share, if you like, and invest into a property of my own. I.e, when it came time to sell the house, I just wouldn't get my 30% as I'd already had it. Just a thought.

I think some of you need to chill out with your answers.

theartfullodger

Cooketh77 wrote: »

Perhaps I should explain... Her house is paid for, apologies for not explaining that. It was just a thought I had thinking I could take out my 30% share, if you like, and invest into a property of my own. I.e, when it came time to sell the house, I just wouldn't get my 30% as I'd already had it. Just a thought.

I think some of you need to chill out with your answers.

Yes, very good... but that doesn't change the fact that if you take out a loan secured on mum's house & don't pay the repayment charges then mum can still get evicted...

Sincerely hope you & mum realise this...


Chill man!!

Artful (retired, 63...)

CLAPTON

Cooketh77 wrote: »

Perhaps I should explain... Her house is paid for, apologies for not explaining that. It was just a thought I had thinking I could take out my 30% share, if you like, and invest into a property of my own. I.e, when it came time to sell the house, I just wouldn't get my 30% as I'd already had it. Just a thought.

I think some of you need to chill out with your answers.

to 'take out' 30% of the value of the house means

a. your mother gives you 30% in cash
b. the owners (as per the deeds) get a mortgage on the property for 30% of the value
to get a mortgage will require the owners to meet the usual mortgage requirements in terms of affordability, salary etc


so whose names are on the deeds
what are their salary/income
how old is you mother

Cooketh77

Ah OK... So not as simple as having the cash already in place then. That's OK, and thanks for your advice.

xx