Added on to mums mortgage

scottyboy100

Hello, first time post and looking for a bit of help and advice if possible....

My mum and stepdad have recently separated and my mum is living in the house they bought together about 5 years ago (I live there also at the moment as am saving a deposit to buy a house of my own sometime soon)

The problem is my mum only works part-time and cannot afford to continue paying the mortgage/bills etc by herself ( i do pay her rent!)

There is not enough equity to sell it and buy something else outright for her to live in, and she cannot get another mortgage on her income alone.

She has come up with the idea that I go onto her mortgage with her (remove my step-dad) as I work full time - although still on a fairly low salary as I am just starting out as a retail manager. I am just looking for advice really, to see if this would be possible - what sort of costs it would be (as I only have a little savings at the minute, and my mum has none) and if this would be a good idea??

I dont want to see my mum struggling to survive, but my girlfriend wants us to look at getting our own house together in a few years and my mum (i think) is planning on staying put here for a good few years yet. She is in her early fifties at the moment and not looking at earning any higher (staying on her few part time hours) so would be unlikely to be able to take me off the mortgage any time soon.

Does anyone see any pitfalls or advantages to this idea? My mum is selling the point that it will get my foot on the property ladder as eventually the house will be all mine and I will have equity available (though that would not be for a good few years yet i hope!)

I think my step-dad is angling to get some money out of the current equity (he has mentioned £25,000) so I presume we would need to raise this from the mortgage too?

My mum earns around £5,000pa, I am currently earning £21,000 - but need to buy a new car to travel to work too shortly. The mortgage currently (my mum thinks) is £135,000 with a value of about £185,000.

Any advice/thoughts welcomed!

holly_hobby

Your step dad will have to agree to the transfer of equity (TOE), and the lender will require you to meet all their criteria and status checks, to allow the transfer to go ahead.

If you don't meet their requirements (and its doubtful looking at the figs), they will not permit the TOE to take place, whether he agrees to it or not.

IF (or when) the TOE is agreed, your going on the mge and property deeds will incur around a £400 TOE conveyencing fee (& a possible lenders admin fee). Further to which, should you wish to effect a mge on your own property following the TOE, your income shall need to be sufficient to service Mums mge and your own, as you are a named mortgagor (with legal liability to pay the mge) with Mum, and the property is not let.

Personally, I would not recommend it, but I understand that your overriding concern for your Mum may make you feel duty bound so to speak .... to that end ensure that Mum is in reciept of any and all socia benefits and assistance that she is entitled to (if selling an renting is not an option for her)

Hope this helps

Holly

Wh05apk

Given a joint income of £26k, depnding on the lender you will probably get a max of £125-£130k .

holly_hobby

Wh05apk wrote: »

Given a joint income of £26k, depnding on the lender you will probably get a max of £125-£130k .

Thats IF you don't obtain a loan for the car pch you mentioned in your initial post (which will obv reduce your assessed income and max jnt borrowings even further).

Holly

getmore4less

If you go on your mums house, say good by to getting your own for a long time.

If he want 1/2 the equity then that will be an issue who paid the deposits?.

Your mum cannot afford this place unless she ups her income.

Sell and rent looks like a sensible option.
Have the SD buy her out
carry on as is paying the mortgage from your rent but then she is stuffed when you want to move out.

Carry on as is and then you buy the place when you have a deposit.
(that has its own issues with resident adults if mum stays.


Do you want this house? if not don't go near a mortgage on it.

Dunroamin

Your mother needs to accept that she should work full time now she's on her own as she obviously can't afford to live on what she earns at present. She's got nearly 15 years until she can claim her pension and obviously cannot go on as she's doing.

scottyboy100

Thanks everyone for your replies. I think you are pretty much voicing the concerns I have in the back of my head!

I think mum is pretty much banking on me going on the mortgage, solving her problems, she carries on part time. But if it looks as though we wouldnt even get enough money on what we earn to do it then in a way that gives me a bit of a 'get-out'. I do worry about how she will manage, but I also dont want to still be living there with my mum, my gf/wife and poss also kids in ten years time!

My step dad didnt put in any deposit when they bought it, it was all equity from the house she had with my dad, but he has said he wants something out for contributing to the maintenance (wooden floors, decorating etc) and paying the mortgage for the last 5 years - so that could be another problem!

I could understand it if he needed at buy a place of his own, but he has gone back to his mums and wants the money to import some flashy car from Japan :cool:

Well maybe the next step is to look at how much we could actually get on our incomes and maybe that will mean mum will have to look at other options too

getmore4less

scottyboy100 wrote: »

. I do worry about how she will manage, but I also dont want to still be living there with my mum, my gf/wife and poss also kids in ten years time!

Don't forget there could also be the mums next boyfriend aswell!

If he has been suporting her fo the last 5 years then I think he will have a resonable claim to some equity.

Thing is at the moment there is little he can do to force the issue.


If I was in your position I would be very keen to make having a mortgage on this place difficult.

the reality check is going to be hard for mum, asuming she does not allready realise and is playing with your good will and sympathy).

Discuss with the GF, I suspect that will clarify your options.

99/100 the GF will not become wife and kids if you stay with mum.

scottyboy100

99/100 the GF will not become wife and kids if you stay with mum.[/QUOTE]

Funny you should say that, my GF has said something similar!;)

Katpin

sounds like a nightmare! totally agreed with other posters on here. Your Mum needs to look at how she can pay the mortgage on her own and not tie you in to something that will stop you doing what you want to do in the future. It is unrealistic for someone to live on £5,000p.a with a mortgage of that size so something's got to give - either more work hours, or sell the house.

If she doesn't figure it out, starts missing repayments etc.. the bank will take the house and then she won't even have the equity that remains. Unfortunately I know a number of people that have buried their heads in the sand with this sort of thing and the result has not been pretty.

Dunroamin

Of course, when you move out, your mum could have a lodger (or 2) to contribute to the mortgage.