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Is this feasible? Opinions please
Blue_Bird
Posts: 60 Forumite
Please move this if it's in the wrong place!
Can anyone with experience of a similar situation offer advice or guidance please? This is very much in the initial stages so i'm sure I'll need an accountant/financial advisor if it comes off, but I'm just looking to bat the ideas around a little bit here first, as I know MSE posters will be honest.
Me: Had mortgage for 10 years, recently sold house; mortgageless at present. Junior professional on £30k salary, accom included with job. Nothing on credit, no debt (only mentioning this as background). Savings of approx £10k at present, with another £14k due to mature/be available in three years.
Family member A with £32k mortgage on house worth £115k-ish, but due to area may sell for as little as £100k. Wants to move, likely to retire/go part time in next 10 years. Would like to downsize to countryside/quieter area but about £10k short of what would be needed. I will inherit 50% of their estate should the worst happen.
Family member B currently renting, unable to get a mortgage for multiple reasons.
My plan is to "invest" £10k into A's mortgage/property, potentially considering getting a joint (very small) mortgage with them if necessary. This would be with the written provision that I will get anything contributed back prior to the division of the estate. It's more of a favour than an investment.
Second part of the plan would be to buy a house for around £110k max for B to rent from me. I'm assuming that this would need to be a buy to let, but not sure if it being family would make this more complicated.
I'd then focus any available cash into paying off the BTL early, treating it as a sort of savings account I suppose.
The timescale for this would be around 3-4 years realistically, just due to the extra savings not being available at present.
I'd really like people to pick my plan apart and help me consider it objectively.
Thank you for reading if you made it this far!
:)
Can anyone with experience of a similar situation offer advice or guidance please? This is very much in the initial stages so i'm sure I'll need an accountant/financial advisor if it comes off, but I'm just looking to bat the ideas around a little bit here first, as I know MSE posters will be honest.
Me: Had mortgage for 10 years, recently sold house; mortgageless at present. Junior professional on £30k salary, accom included with job. Nothing on credit, no debt (only mentioning this as background). Savings of approx £10k at present, with another £14k due to mature/be available in three years.
Family member A with £32k mortgage on house worth £115k-ish, but due to area may sell for as little as £100k. Wants to move, likely to retire/go part time in next 10 years. Would like to downsize to countryside/quieter area but about £10k short of what would be needed. I will inherit 50% of their estate should the worst happen.
Family member B currently renting, unable to get a mortgage for multiple reasons.
My plan is to "invest" £10k into A's mortgage/property, potentially considering getting a joint (very small) mortgage with them if necessary. This would be with the written provision that I will get anything contributed back prior to the division of the estate. It's more of a favour than an investment.
Second part of the plan would be to buy a house for around £110k max for B to rent from me. I'm assuming that this would need to be a buy to let, but not sure if it being family would make this more complicated.
I'd then focus any available cash into paying off the BTL early, treating it as a sort of savings account I suppose.
The timescale for this would be around 3-4 years realistically, just due to the extra savings not being available at present.
I'd really like people to pick my plan apart and help me consider it objectively.
Thank you for reading if you made it this far!
:) 0
Comments
-
Money and family shouldn't be mixed, especially with the word investment in the same sentence.
Hopefully someone else can advise you on the tax implications and such...0 -
I know a great many people will take that line, and I appreciate you taking the time to reply, thank you.0
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