Buying out sisters boyfriend.

l1010

My sister and her boyfriend have split up but she has stayed in their two bed flat. She has rented out the spare room to cover the mortgage which is a fixed term with two more years on it - so at the moment it makes no sense to remortgage and take his name off the property or sell because of the penalties. Which he has agreed too.

When she comes to the end of the term though he wants his portion back. I and my family could lend her that money - but then her wage won't be enough to cover the remortgage and she really wants to keep the flat.

My question is when the term finishes can I get a mortgage with her?

I have a house with my husband which we have a mortgage on - so I'm guessing the new one would need to be a buy to let investment? And would my wage need to be enough that I could cover both mortgage payments? That would be a problem... Any thoughts/advice welcome.

Thanks!

RhysHSCC

Hi l1010, sorry to hear what's happening

It will be tricky I'm afraid. Converting it to BTL is not an option as your sister will remain on the mortgage and still living in the property (not allowed). Even if you would buy the property from her to let out, it would be classed as a regulated BTL and come under sale and rent back rules, again, big no no from lenders.

You are unlikely to get added onto the mortgage as you already have a residential and that will not be allowed by most if not all lenders because of increased risk if anything were to happen.

are you certain it will definitely fail affordability?

l1010

Thanks for your response!

Unlikely to have much wage growth as she's public sector... and sadly falls quite short at the moment.

That's frustrating! So am I right that we could buy a BTL together that neither of us live in? Feels odd it's not possible to do that if she lives there - which I would have thought makes the investment safer?

DigForVictory

Never confuse horse sense with the financial authorities.

Not all families are "safer" fellow tenants.

Best of luck.

Pixie5740

If it's a joint mortgage between you and your sister then I don't think it would be a BTL mortgage since your sister would be living in the property. You would probably need to demonstrate that you can afford both mortgages though.