Student buying property in their name

gadgetmind

Has anyone seen any articles relating to a student buying property?

Daughter is currently renting, but has a few years to go at uni (doing medicine) so is getting a trifle tired of renting. Yes, the hassles of buying may prove greater, but she's getting fed up of leaks that don't get fixed, damp, and general shoddiness.

She has a decent deposit (circa £70k) thanks to some shares I bought her a few years ago that proved to be "20 baggers", and she (OK, me!) invested the proceeds into bank preference shares, which have also done very well. I wish I was this good with my own investments!

What mortgage options are available for the balance, which will probably be "same again"? We'd much prefer 100% in her name due to our own CGT problems (yes, those shares!) but we're happy to provide guarantees.

All feedback welcome.

ACG

No chance.
No income = no mortgage.
Deposit is great, but its only half the story. She needs to not only be able to afford the monthly payments but also the other bills that come with it - having a lodger would not count. So she would need someone with an income to go on the mortgage.

gadgetmind

Well, you say that, and you are obviously well placed to know what you're on about, but then I see products like this.

http://www.bathbuildingsociety.co.uk/mortgages/mortgage-products-for-individuals/buy-for-uni

Of course, at 5% interest we could just bung her the extra from the "bank of Mum and Dad" and charge a mere 4%, but I've never been a big fan of loans within the sphere of friends and family.

ACG

I was aware of this product but I think it has changed since I last spoke to them as it looks a lot more flexible than when I called up to discuss it with them.

When I spoke to them, I got the impression that only a handful of people would ever manage to get one.

Every day is a school day and im always open to learning something new but I dont think you will find any products similar to this. I think it really is unique.

I suspect your income would have to be assessed to some extent if you are acting as a guarantor and this is where I think a lot of them can fall down.

gadgetmind

ACG wrote: »

Every day is a school day and im always open to learning something new

Ain't that the truth!

I suspect your income would have to be assessed to some extent if you are acting as a guarantor and this is where I think a lot of them can fall down.

Healthy six figure income (as an engineer in the grim North) and no mortgage. As I say, classic bank of Mum and Dad.

We could plop this on a plate for her, but I've always tried to make her work for everything, much as my father did for me, big time.

ACG

Fair play, my parents are the same.

It should be all ok then. They never used to accept rental income from lodgers/house mates when this was first launched (or at least thats what I was told).

It looks like this could be a viable option for you/your daughter.

dj1471

You don't say where she is in the country, but would £70k be enough to purchase a decent percentage of a shared ownership property? Might be an option worth considering.

gadgetmind

She's in Nottingham, and her deposit is maybe 30% to 50% of the cost of suitable properties.

Sadly, she's not very "handy", whereas I can tackle a full rewire, etc. but am a couple of hours drive away. No way can I take on anything beyond a 3-4 day "blitz" so we need something fairly fettled.