Cash buy or part mortage with partner?

rach007

Hi everyone,

I desperately need some advice on buying a new home.

I am in a very good situation financially in the fact that I am able to buy a house outright, pending a sale of another property, however this is due to an inheritance and the recent loss of both of my parents. I am not sure if this will count as a cash buy so please forgive me if that is not correct (I am only in my 20's).

When I have received probate I would like to put the family home up for sale and move into a new property. I am currently living with my brother who has also inherited half of everything but not helped me in the slightest.

I would like to move with my partner. He does not have the cash available to split the property half way.

So my questions are as follows;
- Shall I buy the property fully in cash? are there any insurance implications with this?.
- He would like to invest in the property also, so should I draft a solicitors agreement where it is agreed that he borrows the money from myself? (tenants in common) a previous agreed percentage and interest rate?. OR ask him to mortgage his part and possibly buy an small investment flat with the money instead.

I suppose it all depends on interest rates but I would just like some general advice as I haven't heard from other members of my family for a reason I do not know so don't have any older adults to ask for impartial advice.

Any advice much appreciated.

Thanks so much.

stator

Sorry I am a bit confused. So the inheritence, is that in the form of cash or is it in the form of property? And is this property the one you and your brother share?
I am tempted to say when it comes to family keep things simple. Sell up split the money fairly and go your separate ways. Complex agreements could end up with family feuds when things go wrong.

rach007

There is some cash and some of it will be the current property with my brother.

What I don't know what to do is how to purchase my next house with my partner. If I should buy that all myself and set up a legal agreement whereby he pays me back in instalments for a certain percentage or should I just get him to mortgage for that part of the house.

Thanks

stator

Sorry but who is the partner? Your brother? A civil partner?

Pixie5740

To be a cash buyer you would need to sell your current property first and then actually have the money in your account. If you start looking now and put in an offer before your current house is sold then you'll be in a chain because you'll be dependent on someone buying your parents' home before you can proceed with purchasing your new home for you and your partner.

densol_2

Having been married and divorced three times - I'd be inclined to buy the house all by myself and in my name only. Later on if things work out you could always allow him to buy into the property by way of a mortgage of part and have a deed agreement set up to agree ' shares' - but having also lost both my parents in quick succession ( my condolences to you by the way ) I would keep your mind free of stress - buy your house with your money then worry about your partner investing later on.

rach007

stator wrote: »

Sorry but who is the partner? Your brother? A civil partner?

Yes. Life partner, boyfriend... I wouldn't see my brother as a partner..

rach007

densol wrote: »

Having been married and divorced three times - I'd be inclined to buy the house all by myself and in my name only. Later on if things work out you could always allow him to buy into the property by way of a mortgage of part and have a deed agreement set up to agree ' shares' - but having also lost both my parents in quick succession ( my condolences to you by the way ) I would keep your mind free of stress - buy your house with your money then worry about your partner investing later on.

Thank you. I do agree with you but he would like to invest in something aswell. I suppose we could always sort that out in a few months or a year when settled though!

Jon_Bake

I would advise you to buy the home on your own. Maybe you can change it into both your names after a couple of years when both of you are more matured and settled in your family life. The house I am staying in right now was bought through mortgage from Northwood mortgage along with my Ex-husband in both our names. We went through a messy divorce after that and I had to go through a lot of legal struggle and hardships to get this house under my sole ownership. The mortgage brokers were supportive and I had a very good lawyer which helped me to win back this house. So do not make a haste decision, think of the life ahead and then make a decision.