London mortgage

skyeblu

Daughter renting with friends in London on entry level salary with yearly increments would like to buy. Parents ( us) would like to help with deposit and one or both of us apply for joint mortgage with daughter. Parent retired with good public service final salary pensions, home owners no mortgage. Between daughter and us we can easily pay mortgage. Buy to let impossible if daughter lives in so it would have to be a residential mortgage.
Any idea whether we could get a joint mortgage which would allow her friends to be lodgers?
Thanks

Caz3121

on a joint mortgage the issue may be the duration which, the shorter it is, the higher the payments, some lenders have maximum age of 70, there are a few with 75...eg if you are 60 then the maximum would be a 15 year mortgage

amnblog

BTL is not impossible with family resident. It is just underwritten in a different way by certain Lenders.


Speak to a broker.

skyeblu

I think that the stamp duty on a BTL would be £49k by the time a purchase went through so I think it would have to be residential.
I will go to a specialist mortgage broker. It does seem crazy that we can afford to do what we want to do but as most of our assets are cash finding a lender who agrees seems o be the problem.

Caz3121

skyeblu wrote: »

I think that the stamp duty on a BTL would be £49k by the time a purchase went through so I think it would have to be residential.

the increased stamp duty may still apply on a residential property as it would be an additional property for you. Not sure of the rules if it is only property for one of the owners but a second property for the other. Hopefully someone that understands the changes will be able to confirm

_CC_

skyeblu wrote: »

I think that the stamp duty on a BTL would be £49k by the time a purchase went through so I think it would have to be residential.

As it stands, you'll still have to pay the higher stamp duty if you're jointly buying.

It's not just BTLs, it's "additional residential purchases" which includes BTLs.

See example 21 and 22 here: https://www.gov.uk/government/consultations/consultation-on-higher-rates-of-stamp-duty-land-tax-sdlt-on-purchases-of-additional-residential-properties/higher-rates-of-stamp-duty-land-tax-sdlt-on-purchases-of-additional-residential-properties

amnblog

If 'buying with' you pay the extra 3% SDLT.


If 'guarantor' you don't.


Engage a good broker.

skyeblu

Problem with guarantor would be that daughter would only get half the amount of mortgage required based on her salary even with a 30% deposit. Do you think there would be any chance of her getting a much higher mortgage with us as guarantors?
I am going to go to a good broker - thanks to all for your advice. The beauty of this site is that it gives information and an idea of what to ask so that we don't go in totally unaware of options.