Buying second home for children

fammoneymgr

I am 57, have an almost paid for home worth £350,000 and want to buy a property for my children, which will require a £270,000 mortgage. Will i still be able to take out a mortgage for 25 years, based on my age? Any advice appreciated, please. Or just generally: does anyone have advice on the best way to do this? Thanks.

Thrugelmir

Obvious question is how you intend to fund the mortgage into your retirement years.

kingstreet

fammoneymgr wrote: »

I am 57, have an almost paid for home worth £350,000 and want to buy a property for my children, which will require a £270,000 mortgage. Will i still be able to take out a mortgage for 25 years, based on my age? Any advice appreciated, please. Or just generally: does anyone have advice on the best way to do this? Thanks.

You will find the term you can borrow for will be determined by how long you can evidence your ability to pay.

However, most lenders will insist on a term which expires before your 75th birthday even if you can evidence an income longer than that.

themull1

Why can'y you just give your kids a deposit? Can they not buy a house themselves? if anything goes wrong, you will be stuck with a huge mortgage that you might not be able to afford.

fammoneymgr

My kids aren't old enough to qualify for a mortgage themselves so it is a way to get them on the property ladder in London because soaring prices will escalate more quickly than our ability to pay the increasing deposit for them. Any more suggestions, please?

Annisele

How old are your children now? And where do they live? (I don't mean exactly; I just mean "with you" or "the plan is they'll live in the new house with their other parent", or some other thing).

If they won't be living in the house immediately, what do you plan to do with it? Let it out?

themull1

They might not want to live in a house together, will that mean having to sell again when they're older and splitting the cash to enable them to afford a house/flat?

kidmugsy

fammoneymgr wrote: »

because soaring prices will escalate more quickly than our ability to pay the increasing deposit for them.

With a crystal ball that good, shouldn't you be richer than you are?

Brallaqueen

would you be renting the property out in the meantime as your children are not of age yet? a buy to let might be more flexible on terms as it will be financed by the rent it generates, and not by you, if you see what I mean. you would pay costs on sale but if as you anticipate, the prices will have risen then the profit should be enough going forward

fammoneymgr

They will live in it now, in London. This buy to let scheme sounds like a possibility. Yes, the plan is for them to have it in their name, then split the profit when it sells for their own houses when they're ready. How do I go about the buy to let plan, please?

Yorkie1

If they're not old enough to qualify for a mortgage, then they're not going to be old enough to own property in their own names.