Buying a property with parents, but only me on the mortgage

Cheeky73

Due to the up and coming sale of my grandma's house, my Mum is due to receive half the proceeds. The property is half owned by my Uncle. With these proceeds, I want them somehow to own a property or at least part of it (they currently rent)....(it is £120K after CGT - doesn't get you much in suburbs of London).

So my question is: would it be possible for myself and my Mum/Dad to jointly own a property, whereby their share would be the £120K cash and I would have to take out a mortgage for the rest of it...i.e. for example if the property was £220K, I would need a mortgage of £100K.

• This would be my second mortgage, as I also have a mortgage on my own property of £150K, but should have enough equity to raise £100K.
• It wouldn't be possible for my parents to get a mortgage as they are 68 and 71

So I would be buying this as an investment, but my parents would be living in it and would make payments to me each month to cover the mortgage until they were no longer able to - i.e. retirement (they are both currently still in full time jobs).


How can I do this? i.e. could I take the cash out of my property as a secured loan or do I take a second charge mortgage. I wouldn't be making a profit on this property in terms of monthly payments, as I just want them to cover the mortgage (I will be able to afford payments when they can no longer make payments and also there is my brother to help me, but he can't go on the mortgage as he is married etc and would be too complicated)


Really need some good advice. I just want to find somewhere for my parents to live, rather than frittering away money on rent for ever (which is not sustainable).


Thanks

Contemptuous

If you have the equity in your property, and you can afford to borrow the extra, then you could simply take out additional borrowing on your mortgage with your current lender, or remortgage to a new lender for the higher amount. The equity you release + the inheritance money would make your parents cash buyers and no mortgage would be necessary on the property they purchase.

Cheeky73

Thanks for replying to my post.

But can I just clarify something.

From reading other posts, I'm thinking that I can only do the option of borrowing more on my current mortgage rather than the second option of taking out a second mortgage, as I am assuming that with the second mortgage, both owners of the property would have to be on the mortgage, regardless of the fact, that I would be the only person taking out the mortgage (as their portion would be cash). This would not be possible because of my parents age.

Thanks

Thrugelmir

All parties named on the title deeds will need to be on the mortgage. Irrespective of their cash contribution in purchasing the property.