Getting a joint mortgage

Legacy_user

I'm looking to buy a property at 180k with an elderly relative and between us we have £60,000 deposit. She is over 70. We both already own homes so can put up the necessary collateral. How difficult would it be for us to get a mortage together ? Her pension is about 2k a month, I'm on 3k a month. Any feedback is welcome.

Caz3121

you will be restricted by the maximum age allowed by the mortgage provider. Some lenders will not lend past 70, some go up to age 75 but a
£120k mortgage over 5 years @ 3% would be over £2,100 per month
Probably need a broker to find the longest term...there may be lenders that go to 85 giving you a sub15 year term (you do not mention how much over 70 she is)
http://www.money.co.uk/mortgages/how-to-get-a-mortgage-if-you-are-an-older-borrower.htm

System

Hi there Caz thanks very much that's very helpful.

Do you think that I could get a mortage on my own putting my property (worth about 200k) up as collateral? OR remortage my house to release 120k or so needed ? (I own it outright) I currently get rental £1100 per month rent out of it. Would this be a safer option than approaching banks that lend to older people ? I don't understand anything other than mortaging. Equity release looks terrifying to me.

MortgageMamma

Hi, is your relative simply trying to help you up the housing ladder, or will she be living with you? as there could be other options in that case

Trying_to_be_good

You know you'll face the additional stamp duty on buying a second home? Make sure you factor that in to whatever calculations you have.

Is it for a residential property, or an investment?

System

MortgageMamma wrote: »

Hi, is your relative simply trying to help you up the housing ladder, or will she be living with you? as there could be other options in that case

Trying_to_be_good wrote: »

You know you'll face the additional stamp duty on buying a second home? Make sure you factor that in to whatever calculations you have.

Is it for a residential property, or an investment?

HI there. We are looking for a retirement property for her to live in. I won't be living with her at all. What concerns then do I need to have about this ?

Mojisola

Gold_Anaconda wrote: »

She is over 70. We both already own homes so can put up the necessary collateral.

Gold_Anaconda wrote: »

We are looking for a retirement property for her to live in.

Why doesn't she just sell her current home and move into the new property?

System

Mojisola wrote: »

Why doesn't she just sell her current home and move into the new property?

A few reasons. Firstly the estate agent, solicitor fees and stamp duty. Secondly, she would be buying down and to buy down she would be looking to move much further away than she is now. Effectively she could sell the property we both live in and then give me what's left to buy something for myself here. To sell her property and to buy a new one she is going to lose around 50k after all the fees and expenses and be in a place she is not accustomed to and doesn't know very well. It's a bit of a risk. The place she has now she is not happy with, it is a big of a mixed bag in terms of neighbours (London) but she can't afford to sell this and buy again within the local area. I don't want to move with her miles away, I like London and don't want to move away.

AnotherJoe

Gold_Anaconda wrote: »

A few reasons. Firstly the estate agent, solicitor fees and stamp duty. Secondly, she would be buying down and to buy down she would be looking to move much further away than she is now. Effectively she could sell the property we both live in and then give me what's left to buy something for myself here. To sell her property and to buy a new one she is going to lose around 50k after all the fees and expenses and be in a place she is not accustomed to and doesn't know very well. It's a bit of a risk. The place she has now she is not happy with, it is a big of a mixed bag in terms of neighbours (London) but she can't afford to sell this and buy again within the local area. I don't want to move with her miles away, I like London and don't want to move away.

You'll need to explain more.
Why do you think she "would be buying down" if she bought an additional property instead of selling what she has and replacing it with one? You'll also need to pay an extra 3% stamp duty on the new place.

And then who will be looking after the existing house which presumably will be turned into a BTL? Are you aware of the costs and hassle of this?

Mojisola

Gold_Anaconda wrote: »

I'm looking to buy a property at 180k with an elderly relative

We both already own homes so can put up the necessary collateral.

Gold_Anaconda wrote: »

Effectively she could sell the property we both live in and then give me what's left to buy something for myself here. .

I'm confused. Why would she need to give you money to buy somewhere to live if you already have a property?

System

She wants to retire somewhere else without selling the place we both live in. Pretty straighforward really.