Buying a house with my dad

bexcy86

Hi all, im new to the forum. I was recommended here by my brother as he said its a good place to get good honest info/opinions.

I'm 28 and still living at home with mum and dad, I earn about 15k a year and at the beginning of the year I had a lightbulb moment where I just decided to start saving for a deposit for a property. I've saved 9k since January and will continue to do so as I can't afford to buy anything on my own in the area I live in (let alone support myself) Anyway, yesterday out of the blue my dad said that he'd been thinking about my situation and wondered if I would consider buying a house with him to ease the pressure off of me of paying a mortgage on my own. Sort of a shared ownership property. We haven't talked in depth about ownership percentage, but I would say for instance have a 25% share and he would have a 75% share. Everything would be done on a percentage so I would only pay my share of the mortgage, repairs etc. (Fortunately he's a builder so can do any work for free, I would just pay my share of the materials).
I'm excited but nervous because I'm dying to move out and have my own space and he really is giving me a helping hand onto the property ladder which I would otherwise not have had.
I'm just concerned if this works in real life. I've got to be realistic hes 55 (so we wouldn't be able to get a 30 year mortgage, would we?) And I'm concerned if I'd be able to afford the bulls on my own. Has anyone experiemced/heard of this before and how things usually work?
Many thanks for reading!

dimbo61

Bulls! or Bills?
Dad is a builder so self employed?
Not idea what house prices are in your part of the country ( please not London)
You can buy a property with shares ie you 25% and Dad 75% but you both need to be on the mortgage.
A 25% deposit will help and Lenders now lending upto 67 as that is when Dad will get his state pension.

bexcy86

Thanks for the reply, sorry to the typing mistake! Yes dads self employed and in our area the sort of property we'd be looking to buy would be about 180 - 200k.

Thrugelmir

Continue to save your deposit. Your father would help you by gifting money as well at a later date. Rather than paying interest.

I say this given your Dads age. As the mortgage may be a problem.

Voyager2002

Of course, if your Dad has a fair amount in savings then a buy-to-let mortgage might be an option, and for that his age would not be much of a problem.

Annisele

I think it may be difficult for the father to get a buy-to-let mortgage here - because he'd be letting to his child, it would have to be a regulated buy-to-let. That would be based on the father's earnings (and age) rather than on the rental value of the property.

OP - of this £180k to £200k property, how much are you looking to fund through your/your Dad's savings, and how much through a mortgage? Do you know how much your Dad earns?

I suspect this may be one for a broker.

sarah69696pink

I'm looking to do similar(ish) with my mother. Although she would not be paying percentage of repairs or things like that (she would not be living there and therefore no wear or tear from her).


You really need to do some research though - firstly can you both get a mortgage together? Secondly how would you want to work out finances (shared ownership usually involves you paying rent on the part you do not own - is this what you would plan to do with your Dad? Otherwise it seems strange for him to pay for 75% of mortgage - what is he getting out of it?
My mum will be helping me out but also will want to make some profit on the property (otherwise she would just do buy to let on her own) so I will cover all mortgage and repairs etc and will keep the property short term only upon selling she will get percentage of profit (if there is any) basically she will be helping me stop renting in current area and get into a property I own (well part of anyway).
I think its a great idea if you can get it to work for you - but lots to think through as its definitely not a simple option!!

lonestarfan

What is your fathers financial situation - does he have a mortgage on the home you live in with your mum and dad or has his mortgage been paid off? What's his income too as his ability to be on another mortage and to borrow money with you is affected by his current commitment and income.