50/50 mortgage? (shared ownership)

Hudson1984

Hi all,

after some more advice if possible. Been talking over the possibilities og purchasing a house with my parents.

basically i'll just tell you the ideal scenario and if the people in the know could tell me if it's possible that would be fantastic.

Purchase a £100,000 house split £50,000 each, both with our own mortgages (so nota joint application but 2 £50,000 mortgages).

that way I can pay my half off over say 20 years and my parents (60 years old) can have a max 15 year mortgage for theirs - making final payment age 75 - however they would be overpaying and aiming to complete much sooner.

I would then like to purchase their 50% equity at a rate equal to a rent i.e they pay me £300 per month and I pay them £300 to buy their share on a monthly basis meaning no money changes hand and they effectively get free rent (meaning I can look after them in their retirement) and I slowly acrue 100% ownership

is this possible or would we have to have a joint mortgage?

any comments would be greatly appreciated as I would love to help them if i can and of course long term I gain a house as an investment

kingstreet

You can't borrow on a portion of a property. A mortgage is secured on the whole property by all the owners. If three people own the property, they are all party to the one first charge mortgage on it.

amnblog

Sounds great but Kingstreet is right - you cannot have half each and two mortgages.

Go and see a mortgage broker as there are other ways around this.

Hudson1984

ok dokie. cheers for the advice, would like to help them if possible and in helping them I also gain an investment so it benefits everyone

what are the other ways round that you suggest?

amnblog

Hudson1984 wrote: »

ok dokie. cheers for the advice, would like to help them if possible and in helping them I also gain an investment so it benefits everyone

what are the other ways round that you suggest?

You need to go and see someone with your parents and get advice