Buying half of a house of my parent's

Ferguson123

My parents recently bought a second house by taking out a mortgage on the house that we currently live in. They now want me to buy half of this second house of them and then buy the other half later in life when I am in a position to do so.
Would it be possible for me to take out a mortgage on half of this house?
Any help or tips would be greatly appreciated.

lincroft1710

No, you cannot take out a mortgage on half a house.

if you can afford to buy a half share of the house without a mortgage, then you could do that and possibly obtain a mortgage at a later date to buy the remaining half share.

HappyMJ

Ferguson123 wrote: »

My parents recently bought a second house by taking out a mortgage on the house that we currently live in. They now want me to buy half of this second house of them and then buy the other half later in life when I am in a position to do so.
Would it be possible for me to take out a mortgage on half of this house?
Any help or tips would be greatly appreciated.

Tips...avoid. You can pay cash for half a share in the house if you want to....but not take out a mortgage on it.

Does your partner have any interest in the house you live in? Could your parents throw your partner out? If I were your partner I would want housing security and that would mean I wouldn't want to live in a house owned by my partners parents which I would be paying rent towards and getting no beneficial interest. Do you and your partner also pay for all repairs and maintenance on the property?

I'd buy a house of your own with your partner that you both own with a mortgage if you need one and move out of the house you are living in.

Ferguson123

Thanks for the prompt reply
Unfortunately I am not in the position to buy half a share of the house without a mortgage.
Is there any possible way around this issue?

Ferguson123

Thanks for the advice HappyMJ, I am not currently in a relationship within anyone therefore the partner issue is not a problem. I really like the house that my parents have bought as it is in a great location and is nicely finished, and would hate to miss out on the opportunity of buying it.

mrginge

They sell you the house for half it's value.

In X years time you remortgage and give them the extra money.

HappyMJ

Ferguson123 wrote: »

Thanks for the advice HappyMJ, I am not currently in a relationship within anyone therefore the partner issue is not a problem. I really like the house that my parents have bought as it is in a great location and is nicely finished, and would hate to miss out on the opportunity of buying it.

You said "we" so I assumed sorry about that.

If you buy a share of this house any house you do buy with a partner should you find one will be subject to an additional 3% SDLT. I wouldn't do it.

audigex

mrginge wrote: »

They sell you the house for half it's value.

In X years time you remortgage and give them the extra money.

This would work, but only if the parents' current mortgage is <50% of the value of the house: otherwise they wouldn't be able to settle their mortgage and therefore wouldn't be able to sell.

mrginge

audigex wrote: »

This would work, but only if the parents' current mortgage is <50% of the value of the house: otherwise they wouldn't be able to settle their mortgage and therefore wouldn't be able to sell.

The mortgage is on a different property.

getmore4less

Who is going live in this second house.

tlc678910

Hi,
I agree that the best way around this might be your parents agreeing to sell you the house for half price - if they have sufficient equity.

In the future you could sell or remortgage to repay a further agreed amount. However this is risky for your parents if they may need that money in their retirement. This could put them in the uncomfortable position of having to ask you to sell to pay them back and you could refuse.

If they do not expect to need the money it is less risky. If you had brothers or sisters and fair inheritance is a concern they could alter their will to reflect that you have already had a portion of your inheritance (the house equity).

If your parents own the house outright could you buy it off them by paying them directly each month? (I think I have seen this described as a private mortgage) If this is a possibility you could take legal advice about it.

Good luck
Tlc