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Buying flat with "investor" and still getting Mortgage?
Mona777
Posts: 7 Forumite
Hi,
I want to buy a flat in London as soon as possible (many reasons - tired of having flatmates, and landlords/renting in general), but still need to save more for a deposit to make this possible.
I am looking into "official" Shared Ownership housing as well, but it is not easy to find them in right area, and I also think they do not always offer the best deal.
So, I have a friend who has some savings to invest. She already owns a flat with her partner, and she doesn't have enough money to buy a whole flat, but she would be interested in chipping in as an investor for "my" flat. I would still have to get a mortgage for my part as well though - her part would only be approx. 25%. and I would pay her interest/rent for this part.
Would this arrangement even allow me to get a mortgage?
I've read up about shared equity purchases, but seem in these cases both parties would live in the flat - in my case, only I would live there.
Thanks for your help!
I want to buy a flat in London as soon as possible (many reasons - tired of having flatmates, and landlords/renting in general), but still need to save more for a deposit to make this possible.
I am looking into "official" Shared Ownership housing as well, but it is not easy to find them in right area, and I also think they do not always offer the best deal.
So, I have a friend who has some savings to invest. She already owns a flat with her partner, and she doesn't have enough money to buy a whole flat, but she would be interested in chipping in as an investor for "my" flat. I would still have to get a mortgage for my part as well though - her part would only be approx. 25%. and I would pay her interest/rent for this part.
Would this arrangement even allow me to get a mortgage?
I've read up about shared equity purchases, but seem in these cases both parties would live in the flat - in my case, only I would live there.
Thanks for your help!
0
Comments
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Anyone? Many thanks
0 -
Your best bet would be to speak to a mortgage broker about this proposal to see if it's possible.
However, lenders don't like you borrowing the deposit which is essentially what you will be doing. This means that your investor friend will have a stake in the property which will be an issue for the mortgagee.0 -
Thank you - that's what I had feared. I will arrange to meet a Mortgage adviser.
If anyone else has any input / experience with this situation, it'd be grateful to hear from them 0 -
Who is going to own the property?
Who is going to be party to the mortgage?
Just two of the potential issues which face such a proposition.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Hi,kingstreet wrote: »Who is going to own the property?
Who is going to be party to the mortgage?
Just two of the potential issues which face such a proposition.
Well, my friend would pay her share (roughly 20-25%) outright.
I would be fully responsible for the mortgage for the remaining share 75-80% myself.
We both would own the flat, buy my share would be bigger & I would live there.
Well, that was the idea at least!
Thanks!0 -
Mortgage lenders expect the owners and borrowers to match, so you'll struggle to find a lender willing to have someone pay the deposit and have an interest in the property without them being party to the mortgage.
One to put in front of a broker to establish what you can do.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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