New/self build with shared ownership with parents

lukeadw

Hello Mortgage gurus!
My partner and I have finally managed to save a reasonable deposit to buy in London. Hurrah!!
However after looking at what our budget would get us we became quickly deflated.
It was at this time that my father and step mother suggested that we might help them with the cost of their proposed new/self build of a small two bedroom house on a plot in their garden.
This was a project that was already being planned but it was thought that us going in and paying half of the build and subsequently owning half of the resultant property would be mutually beneficial.
My parents would be paying their half (minus half the value of the land) in a cash lump sum but we would be requiring a mortgage to pay for our half.

My question to you knowledgeable folk is how much of a problem would it be for my partner and I to get a mortgage on a building that doesn't exist yet and that we would only own half of?

We would be looking at roughly £120k cost for our half of the build and our deposit would be in the region of £35k.
I am self employed with good accounts for many years and a good to excellent credit rating and my partner is in full time employment but due to only living in the uk for 3 and a half years her credit rating is only fair.

Thanks in advance for your pearls of wisdom! (it's been a bit of a minefield trying to figure this one out!)

libf

Engage a good broker.

Thrugelmir

lukeadw wrote: »

My question to you knowledgeable folk is how much of a problem would it be for my partner and I to get a mortgage on a building that doesn't exist yet and that we would only own half of?

All owners would need to be on the mortgage.

Take a look at Buildstore. Give you some ideas as to the type of finance available in the market.

http://www.buildstore.co.uk/finance/

lukeadw

Thanks for the tip.
So if that is the case would you think that my father and step
Mums age would be a problem in getting a mortgage? Would they have to be assessed even if they were not the ones going to be paying back the loan?

I've had a quick look at the buildstore and they provide a mortgage advice service. Would it be a good idea to use a build store mortgage broker too then do you think or would a completely independent broker be a better route to go down?

Cheers

Thrugelmir

lukeadw wrote: »

Thanks for the tip.
So if that is the case would you think that my father and step
Mums age would be a problem in getting a mortgage? Would they have to be assessed even if they were not the ones going to be paying back the loan?

Age is a consideration. Everybody named on the mortgage is liable for it. There's no electing who pays.

Suggest you seek advice. By far the quickest route.

lukeadw

Thanks again for that!
I have started talks with a buildstore representative so we are on the way!!