buying half share of private property

bribri_2

I may he able to buy a half share in a house. It is for private use. I would gave a mortgage but the other half would be owned outright. before I start hunting around, is this likely to cause any problems in getting a mortgage?

BobQ

You can own a property as tenants in common (ie you each own a share of the house which in theory you can sell and bequeath in a will in different ways). The problem you will have with a mortgage is that you cannot really have a mortgage on half a house without complications. The mortgage provider will want to know what happens in the event that you default on your mortgage and that will inevitably involve the owner of the other half in making commitments about such a scenario.

Even if you did not have a mortgage it would be silly to enter into any form of joint ownership unless you also had a deed setting out what happens if one party wants to sell and the other does not, or if one party is unable to pay for essential maintenance etc. This can easily be drawn up. With a mortgage on one part, the mortgage provider would want some agreement/guarantee to cover what happens if you default on your mortgage and how they get their money back.

As ever what is possible will depend on the exact circumstances.

loubel

You can't get a mortgage on half a house only. If you need a mortgage then the two of you will need to get one together.

Who are you planning on buying a house with? Will you be living there together?

bribri_2

Thank you for the answers.

Only I would be living in the property. Yes we would have to get some legal documents to set out obligations. The property is owned outright by one person. I can't afford to wholly buy the house but I can afford (with a mortgage) half of it.

So if it was e,.g valued at £400,00, I would get a mortgage for 200K. It's sort of like saying I am putting a 50% deposit dwn (the share already owned) but from what you are saying it doesn't look like the mortgage company would go for that.

Alternatively, Has any one ever just bought from someone privately and paid them off in stages? (obviously big risk for the vendor)

LandyAndy

Would be much easier to buy all of a smaller house.;)

getmore4less

Look at shared ownership issues.

Normaly you would need to pay rent on the other 1/2.

Who pays for maintanence/improvements

Exit plans. when one of you wants/needs out or dies.

CGT issues for the non occupier

kingstreet

You can't get a sole mortgage on a property which is jointly owned. The lender would be unable to repossess if the mortgage holder defaulted on the payments.

So if it was e,.g valued at £400,00, I would get a mortgage for 200K. It's sort of like saying I am putting a 50% deposit dwn (the share already owned) but from what you are saying it doesn't look like the mortgage company would go for that.

If it could work in such a way, the other party's half would not be your deposit as it isn't part of the bit you will own.

You're trying to get a 100% mortgage on your share of half a property.

Not going to happen. Sorry.

holly_hobby

The mortgage lender will want all owners to be party to the mge (regardless to how the deeds may be written, tenants in common or joint tenants), and as such the current owner will need to go onto the application with you.. Furthermore it would be classed as a remortgage with simultantous transfer of equity (this is because the current owner already holds title, to which you are being added).

Even if he agreed with this, as he would be a jnt mortgagor, he is also legally liable for the mge repayments along with you ...... so you can see there are several reasons why this is a complete dead duck idea.

You may of course arrange a private mge arrangement - bit its fraut with legal requirements and complications.

My advice, this isnt' for you.

Hope this helps

Holly