Buying a share in Parents House

pinkwizard

Hi,



Looking for some advice. My parents owe about 80k on their mortgage with 10 years left (Property value 180k ish) Due to a change in work they are falling behind on mortgage.


Me and my brother would like to a buy a share in the property at 20k each (we both still live at home) reducing my parents outstanding mortgage to something that is manageable.
I have 3 questions really - is this even possible? What's the best way to go about it? Would this help / hinder our future mortgage prospects?


TIA

xylophone

You could approach the mortgage lender - I suspect that a remortgage would be proposed where you would all become joint and severally liable as tenants-in-common of the property.

Under this form of ownership each of the four would own a specific percentage of the property - as the house is (presumably) worth more than £80,000, the percentages would not be equal.

You would all have the right to will your share as you chose - this would need to be discussed.

With regard to any future house purchase with mortgage by you and your brother, presumably the mortgage lender would need to be satisfied that you had the wherewithal to meet your obligations on both mortgages?

Although as the mortgage on your parents' house would be small, this should not be too difficult?

pinkwizard

Thanks for the info - How would it work If we both had 20k in cash to put straight in - can this be done and a % of the house put into our names?

1DayAAT

xylophone wrote: »

You could approach the mortgage lender - I suspect that a remortgage would be proposed where you would all become joint and severally liable as tenants-in-common of the property.

Under this form of ownership each of the four would own a specific percentage of the property - as the house is (presumably) worth more than £80,000, the percentages would not be equal.

You would all have the right to will your share as you chose - this would need to be discussed.

With regard to any future house purchase with mortgage by you and your brother, presumably the mortgage lender would need to be satisfied that you had the wherewithal to meet your obligations on both mortgages?

Although as the mortgage on your parents' house would be small, this should not be too difficult?

i did exactly this for my parents but via remortgage, no cash lump sum. deeds had to be reprocessed to add me etc but yes very possible, i suggest find a good local financial advisor to lead you through the whole process as i did. having cash to throw in will only help not hinder. best of luck

booksurr

pinkwizard wrote: »

Thanks for the info - How would it work If we both had 20k in cash to put straight in - can this be done and a % of the house put into our names?

you don't seem to realise that as long as there is a mortgage any division of the property between the mortgage borrowers (your parents ) and any one else needs approval from the lender

Your parents cannot simply sign over £20k worth of house to you as the lender owns it at the moment not your parents

whilst i can understand you want something in return for your money you cannot get it without the lender's agreement.