Buying half of a house from parents

Gemballs

Hi there,

A bit of a random one..

My parents are having a bungalow built and have offered their existing house to my boyfriend and I.

We can't afford to buy the house in full and want to buy 50% which my parents are happy with. My parents would own the other 50% as the house is nearly paid for.

We can't seem to find a lender for the 50%.

Does anyone know how we could do this?

Thanks in advance.
Gemma

System

You won't find one. You will need to get a joint mortgage with your parents to achieve what you want.

getmore4less

You can't borrow on 1/2 a house.

How much do they need now, could they become your lender by selling you the full house and you just pay them monthly rather than a mortgage company.


There is the longer term issue of CGT if the keep some back and don't live there.

Gemballs

Thanks for your response.

How would this work as my parents have nearly paid off the whole mortgage?

They need some capital back as have used a lot of savings to pay for the build of the bungalow.

Thanks

Gemma

Gemballs

Thanks for your note.

My parents would need a chunk of capital from the house so wouldn't be able to be our lender.

Hsbc mentioned equity release and we have an appointment next week, but not sure if this is an option?

Thanks

Gemma

DandelionPatrol

Gemballs wrote: »

Thanks for your note.

My parents would need a chunk of capital from the house so wouldn't be able to be our lender.

Hsbc mentioned equity release and we have an appointment next week, but not sure if this is an option?

Thanks

Gemma

If you have say 10% deposit, you could mortgage with your parents to 80% and own the property Tenants in Common with them, and your parents put the 80% to pay down their existing mortgage. This is Equity Release.

There may be issues if your parents wouldn't live at the property, so you would probably need a broker rather than going direct to lenders.