Buying with family member

pad1231

Evening all after looking through houses recently and realising i wouldn't be able to afford one in my area my granddad came up with a potential offer as he's hoping to relocate in to the town centre and wouldn't mind having some one live with him.
Basically were thinking of sharing a house and lets just say for example its 200k. Hell be putting his 100k down in cash for 50% of the home and ill be putting down 45k and looking for a 55k mortgage for the rest.
Just wondering for advice on how i go about asking for a mortgage here do i go on the home been worth 200k or 100k in terms of LTV I'm presuming 100k as id only own 50% and whats the risks to both of us if say i couldn't pay the mortgage repayments even thought i know it won't be a problem.
Also not that i like to be grim but in the event of him unfortunately passing then where would i stand as id just expect my mum to own the other half anyway through inheritance but don't know the complications this could cause? Thanks for any advice.


P.s As a little side note I've always wondered on the 5% deposit HTB 20% Government is it possible to still get a government 20% if i put say 30% of my own money down on a cheaper property on my own.

Contemptuous

You would need a joint mortgage with him. You can't mortgage half a house.

pad1231

Thanks, Makes sense but not sure about that idea with him been the age he is! will have to think this through more or perhaps take 25% ownership or pay him directly.

elsien

If you're planning ahead for all eventualities you also need to consider will happen if one or either of you needs to sell for any reason, or if your personal circumstances change - one of you meets a partner and wants to live with them, grandad has to move into care and needs the equity, you get on each other's nerves too much etcetera. None of which may happen, but if they do you'll both need to have considered the implications.