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If I own 4/5% of a house, what is the impact on Mortgage or Help to Buy?
Jeff.Jones78
Posts: 36 Forumite
Hello,
I will end up owning 5% or so of my ex new house to allow her to buy a house for my daughter, etc. I will obviously not have any benefits of this house nor would be living in it.
On the flip side, since I will be owing 5% of a house, am I seen as a home owner?
Will I still be able to use Help-to-buy?
If I apply for a mortgage, would I still be seen as a first time buyer or would it impact the time of mortgage I can have?
Any advice will be more than welcome, I start to wonder if lending some money to her is not scr*wing me over
J.
I will end up owning 5% or so of my ex new house to allow her to buy a house for my daughter, etc. I will obviously not have any benefits of this house nor would be living in it.
On the flip side, since I will be owing 5% of a house, am I seen as a home owner?
Will I still be able to use Help-to-buy?
If I apply for a mortgage, would I still be seen as a first time buyer or would it impact the time of mortgage I can have?
Any advice will be more than welcome, I start to wonder if lending some money to her is not scr*wing me over
J.
0
Comments
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Well you're not lending money, you're investing in a property that is benefitting your daughter.
If you own a home, no matter how much you're not a first time buyer, not sure how that affects the mortgage0 -
Rather than buying part of the property, why not lend her the money and put a charge on the house? You are then still a FTB. When she moves, you get your money back unless it's in negative equity.0
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Jeff.Jones78 wrote: »Hello,
I will end up owning 5% or so of my ex new house to allow her to buy a house for my daughter, etc. I will obviously not have any benefits of this house nor would be living in it.
On the flip side, since I will be owing 5% of a house, am I seen as a home owner?
Will I still be able to use Help-to-buy?
If I apply for a mortgage, would I still be seen as a first time buyer or would it impact the time of mortgage I can have?
Any advice will be more than welcome, I start to wonder if lending some money to her is not scr*wing me over
J.
Are you party to the mortgage on your ex's house?0 -
Nobbie1967 wrote: »Rather than buying part of the property, why not lend her the money and put a charge on the house? You are then still a FTB. When she moves, you get your money back unless it's in negative equity.
I am not familiar with the charge on the house concept? Would that mean that when she sells I get the exact amount back even if the house value goes up?
J.0 -
Thrugelmir wrote: »Are you party to the mortgage on your ex's house?
No, she is getting a mortgage in her own name. I would just buy in a percentage of the house to help her increase the deposit value, so we would own it as tenants in common with her owning 95% or so and me the remaining.
J.0 -
Jeff.Jones78 wrote: »No, she is getting a mortgage in her own name. I would just buy in a percentage of the house to help her increase the deposit value, so we would own it as tenants in common with her owning 95% or so and me the remaining.
J.
I'm pretty sure her mortgage lender won't allow this.0 -
Jeff.Jones78 wrote: »Would that mean that when she sells I get the exact amount back even if the house value goes up?
It depends what you agree with her, it can be a percentage of the sale price if you want.0 -
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It depends what you agree with her, it can be a percentage of the sale price if you want.
If I had a charge over the house, would it create issues with the mortgage company too? (cf marksoton post)
In the case of putting a charge over her house, would I be seen as a home owner?
J.0 -
This has all been discussed before:
https://forums.moneysavingexpert.com/discussion/5359228
You need to work out if you are gifting your ex money, lending her money and getting a second charge on the property, or jointly owning the property.0
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