buying into a family property

Jenble

Hi everyone

I'm looking for some advice really..

My partner & I, although keen to get on the property ladder, had pretty much come to terms with the likelihood we'd never be able to raise enough deposit. However...

My mother & grandmother currently live together in a house worth approx £300,000 with a outstanding mortgage of approx £55,000. They have approached us with an offer of buying into the property they currently live in. They would both like a sum of money out, but also wish to leave some invested in the property. My mother's asked if my parter & I would like to buy into the property, with a mortgage amount of at least £150,000. My mother & grandmother would not be living in the property with us if successful as already have their own plans for other living accomodation.

My partner's salary is £20500 and mine £23800, with an average credit score (no defualts, ccj's, late payments etc, but have been refused credit 6 months ago).

Any advice on what the next step would be & any other info about our situation would be really appreciated.

Thanks

kingstreet

If they are to remain owners of the property, they would need to be party to the mortgage and that will be problematic at advanced ages.

You may be able to look at a purchase at undervalue, but they won't be able to be part owners or borrowers. They could perhaps take a second charge on the property once you've purchased it from them and this would be repayable when you sell. This will be subject to lender approval.

Stamp duty will of course be payable and there may be deprivation of assets issues if your grandmother needs council funded care in the foreseeable future.

http://www.ageuk.org.uk/home-and-care/care-homes/deprivation-of-assets-in-the-means-test-for-care-home-provision/