Potential problem co-owning with brother

pollyanna24

fivetide wrote: »

Can you do that now? Get brother to buy you out with his fiance and you get a smaller place that is easier on the bills etc?

I appreciate you might not want to move but that could be an option and the house sounds pretty big!

Haha, it's not that big. It's a standard three bed house.

I've figured that we would get £70,000 each if we sold up. And I could get a mortgage of about £80,000 based on my income (although with the rule changes, maybe not so much), but where I live, you can't get anything for £150,000 and I don't want to move the girls around too much.

My brother has said he's not rushing into anything and that we all have to sit down and discuss his fiance moving in and that nothing will change for about 2 years.

I have my spreadsheets and in two years (if house prices stay the same), going by how much we overpay at the moment, I would get about £87,000 which might go that little bit further into me buying somewhere.

Now I can't decided if we should stop overpaying and just save the overpayment (separately obviously) or carry on overpaying.

fivetide

In terms of overpayment, interest rates are only going to go one way from where they are so I would keep doing that as once they rise the overpayment will be eaten away until it becomes 'the payment'!

tea_lover

House prices are very unlikely to be the same in 2 years.

pollyanna24

tea_lover wrote: »

House prices are very unlikely to be the same in 2 years.

Thanks. I figured they wouldn't, but couldn't think of any other way to guesstimate my likely equity would be.

But it's all relative right? If house prices have gone up, then I will get more money, but also have to pay more for my next house and vice versa if prices have gone down?

fabforty

As his GF will (I presume) be sharing your brother's room, I am not sure what you expect to be getting from them. The fact that they will be making money from her property, is irrelevant but you seem put out by it.


Of course she will use additional water, gas, electricity etc, but are the bills split 50/50 at the moment? If they are, then for you to ask for more due to her moving in, but have no been paying extra for your two children, seems unfair and a little petty.

maman

fabforty wrote: »

As his GF will (I presume) be sharing your brother's room, I am not sure what you expect to be getting from them. The fact that they will be making money from her property, is irrelevant but you seem put out by it.


Of course she will use additional water, gas, electricity etc, but are the bills split 50/50 at the moment? If they are, then for you to ask for more due to her moving in, but have no been paying extra for your two children, seems unfair and a little petty.

I'd more or less agree with that but may be some difference to food bills with an extra adult in the house. That's something else that would need discussing: who does the cooking!:rotfl:I'd certainly have a talk about that.



I'm assuming the plan is that for the 'next two years' your brothers fianc! will save all her money towards a deposit so she'll have nothing to do with your mortgage as such. Your house will still be 50:50 in equity and most bills. There is an issue if they were to split up she'd have a load of money and have lived rent free but that's for your brother to worry about.


Personally I wouldn't sell up yet as I think that house prices will go up and also interest rates. I'd only sell up if you were planning to buy again right now.


I agree, keep overpaying while interest rates are low.


:Ton being so sensible with money.:)

pollyanna24

fabforty wrote: »

As his GF will (I presume) be sharing your brother's room, I am not sure what you expect to be getting from them. The fact that they will be making money from her property, is irrelevant but you seem put out by it.


Of course she will use additional water, gas, electricity etc, but are the bills split 50/50 at the moment? If they are, then for you to ask for more due to her moving in, but have no been paying extra for your two children, seems unfair and a little petty.

Not sure what I meant when I said what would I get out of it, but surely she can't expect to live somewhere for free while making money out of her own flat?

I'm not put out by it as such, I have been very easygoing with her staying over at our place and such like and to be honest, if roles were reversed, I don't think my brother would have been too happy if I had introduced a man into the house. But everything is fine and she is a lovely girl.

He has had to "put up with" me and my children, but then we are family and this girl (although they are now engaged) has only been on the scene since he met her last November.

At the moment, bills are split 50:50, but I pay for everything foodwise etc. for my girls and they are not there at the weekends (either at their dads or if it is my weekend, we tend to stay at my parents). I tend to stay away the weekends I don't have girls as my parents live closer to my work, so this gives my brother some extra space as well. I'm not all me me me, haha!

pollyanna24

maman wrote: »

I'd more or less agree with that but may be some difference to food bills with an extra adult in the house. That's something else that would need discussing: who does the cooking!:rotfl:I'd certainly have a talk about that.



I'm assuming the plan is that for the 'next two years' your brothers fianc! will save all her money towards a deposit so she'll have nothing to do with your mortgage as such. Your house will still be 50:50 in equity and most bills. There is an issue if they were to split up she'd have a load of money and have lived rent free but that's for your brother to worry about.


Personally I wouldn't sell up yet as I think that house prices will go up and also interest rates. I'd only sell up if you were planning to buy again right now.


I agree, keep overpaying while interest rates are low.


:Ton being so sensible with money.:)

Thank you for being nice to me. I'm just a poor ole single mum trying to do my best, teehee. I've been on the property ladder since 2003 and I just don't want all my hard work (i.e. overpaying) to just have to be paid in rent if I have to sell up.

And I find it hard to hard not to see "our" house as "my" house as I did live there for 5 years before my brother bought into it.

missprice

pollyanna24 wrote: »

Thank you for being nice to me. I'm just a poor ole single mum trying to do my best, teehee. I've been on the property ladder since 2003 and I just don't want all my hard work (i.e. overpaying) to just have to be paid in rent if I have to sell up.

And I find it hard to hard not to see "our" house as "my" house as I did live there for 5 years before my brother bought into it.

So when did your brother buy a share of the house?
Is it a 50/50 split?
How much longer to run on the mortgage?
How much are you both overpaying?
If you carry on overpaying at the same rate when will your mortgage finish?

Or in simpler terms how long will remain on the mortgage in 2 years and will you then be able to remortgage to buy him out?

pollyanna24

missprice wrote: »

So when did your brother buy a share of the house?
Is it a 50/50 split?
How much longer to run on the mortgage?
How much are you both overpaying?
If you carry on overpaying at the same rate when will your mortgage finish?

Or in simpler terms how long will remain on the mortgage in 2 years and will you then be able to remortgage to buy him out?

My brother paid my ex £20,000 in 2011 as at the time there was £40,000 equity in the house.

The mortgage is due to run until 2041, but we are overpaying to the extent where it will be paid off in 7 years (ie 2021). This is £500 each.

In June 2016 (the 2 years that my brother mentioned to me), there will be about £87,000 left on the mortgage (this doesn't factor in interest rate increases though).

I would (possibly) be able to get a mortgage for this amount, but I wouldn't be able to raise the £87,000 or thereabouts half if my brother's equity (that's on a property value as of today).

So I think I will discuss it with my brother and will see if I can maybe buy a 2 bed flat nearby which I might be able to do with my £87,000 and a mortgage.