Joint mortgage?

Flachi10

Hi all,

I'm after some advice please.

A friend of mine currently owns a house which was purchased with the help of a family member who improved the house. The family member now wants to sell it to get the profit.

My friend wants to stay in the house and wants to remortgage it as a way of staying and the property and providing the profit to the family member, so she's asked if I want to go in on a joint mortgage.

She would use her profit to put in a deposit with us sharing the mortgage.

As the house is at the top end of it's valuation, and given the market conditions (est a 5% increase over 5 years) I'm not sure it'll be worth my while as this would be a short term (3-5 year) venture. I currently rent.

I don't have money to put in so I'm in two minds as to get on the market through this or save my money for a deposit (which I can save quite a bit).

Thanks

Kynthia

Do you really want to financially tie yourself to a non-family member with a debt lasting 25 years on an asset that could decrease in value???

What if they refuse to sell and you want your money back? What if they stop paying their half of the mortgage and you have to pay it all or have the property repossessed? What if the property devalues and ends up being worth less than the mortgage? Are you both going to live there, then what if one of you wants to move a partner in?

This is fraught with difficulties and I think you'd be much better saving and putting your money is a good savings account.

Flachi10

Thanks for the response - those are some of the key things I'm worried about, especially in the current climate.

sammyjammy

Don't do it, its a recipe for disaster

Flachi10

That all seems fairly conclusive.

I do think I can save enough over the next few years to buy alone and that would be a better option I think.