ANY WAY of Buying my Family Home?

Lauraza_2

I live with my Mum in our family home, which my mother has almost fully paid the mortgage for. She is planning to sell the house in approx 2 years, but I would like to stay here. However, I have expressed my feelings but my mum says I cannot afford it and is not willing to sell it any cheaper to me!

Apparently she needs the whole profit from selling the house to put towards her new one. I am in my early twenties, as is my partner. During the time between now and when the house is sold, we will hopefully be on a decent salary as he is working within a profession, and we be fully qualified by then, and hopefully as I graduate I will be earning good money too.

We think the house is worth between 150,000 to 160,000, based on other houses nearby that have sold. Is there any way we could afford this house, maybe through some kind of a combination between a mortgage and a contract with my mother to pay the rest somehow? I'm not sure if it's possible, so any suggestions would be appreciated!

Debt_Free_Chick

Lauraza wrote:

Is there any way we could afford this house, maybe through some kind of a combination between a mortgage and a contract with my mother to pay the rest somehow? I'm not sure if it's possible, so any suggestions would be appreciated!

The mortgage depends on how much you have for a deposit and then your earnings. Difficult to be more precise, without more details.

As for the contract with your mother, then this is unlikely to be an option if she needs all the equity from this house to finance the purchase of another - as she will need the money "NOW" and not in instalments, spread over the future.

Have you done a budget to see if you could afford to live in the house, including the mortgage? Each £10k of mortgage would cost about £60 per month - that assumes a 25 year repayment mortgage with an interest rate of 5%.

There are some useful calculators on the Charcol website.

John_M_Business

The answer to your questions is totally dependent on your mother if you cannot find anyone / business willing to provide the financing for it.

Of course you can come to some kind of agreement with her, the trouble is that one or other of you has to be 'liable' in the even of your inability to meet payments / conditions. These kind of 'contracts' are fraught with potentially disastrous consequences on relationships.

Additionally, there is still the problem of how your mother finances her new home, the only way she can achieve this is by proving to the bank that she can support the purchase - however the trouble in this is that if you 'default' then she would have the unwelcome everybody-loses decision between selling up her new home, or asking you to sell yours.

... sorry, but if you and your partner cannot support a mortgage over the home at this time then the only other option is to persuade your mother to wait until you can... but this might be more than two years.

donsaini

hi. 2 things to note, as mum is sticking to her guns.

1. house prices will come down in next 2 years so house will probably worth less then anyway, plus your salaries will go up.

2. if house worth £150k. some lenders will lend standard upto 3.5x combined salary. (some even upto 5x). so between you, you both will need to earn about £42750. this assuming 100% mortgage. so for example if 10% deposit of £15k, then need to earn £38500 combined.

remember getting the mortgage wont be a problem, its the affordibility issue, eg loans, cc debts, etc. if you feel you're stretching yourself then either fix for a decent amount of time till more settled. also save as much as you can now, remember higher the deposit lower the mortgage.


also remember to pay your mum what the house would sell for on open market, eg come to an agreement to match her highest offer. DONT pay what the house is valued at or the asking price as you'll pay.

learn a lesson from mum, that you have to look after number one first, then others no matter how close.

hope thats a start

Lemoncurd

A lot can happen in two years, you might find that when you graduate you want to take a job further from home or your partner finds a good job elsewhere. Keep saving for a deposit over that time or if you have them keep trying to keep your debts as low as possible as these will count against you when trying to get a mortgage. Six years ago my then partner and I bought a house for £130,000 within weeks of us both graduating so if you both have good jobs you might be able to afford around £150,000 - 160,000. Of course no-one knows what will happen to the housing market in that time either.
Good luck and try not to worry about it until you mum makes her decision to sell.

master_blaster_2

have to agree with the above advice (still not sure of prices crashing yet)
but the main advice is to save save SAVE ... the more you have for a deposit the better even if you dont pay ur mums house.

dougk_2

There are a few things to consider.
Firstly , your mother could sell to you a little cheaper as she would not need to involve estate agents etc so can pass on this saving.
You will be able to save money as the searches, survey etc are not needed as you are already familiar with the house
As other posters have said 2 years is a long time and lots can happen. Your wages should increase, but as to the price of the house - who knows ( i dont'want to start yet another discussion on the topic, there is plenty on this board about it!) , could go up, down or stay static.
As suggest the best route is to save as much as possible so you have the possible option of buying this house or another in the future.

calleyw

dougk wrote:

You will be able to save money as the searches, survey etc are not needed as you are already familiar with the house

Are you sure on that. As I thought it was the condition of most mortgages to have a survey done. Just so they know that there money is safe. And the property is worth the money they are lending you.

If you know the area then yes other searches may not be worth while.


Yours

Calley

dougk_2

The mortgage company will require a valuation report that is true, but this is less than the cost of a survey (i.e. homebuyers report). Many lenders will even pay for the cost of the valuation if you are a FTB.

calleyw

Sorry forget that there where 3 types of survey choices when we moved.

A vaulation one. One for houses from 1930's onwards and one for houses prior to 1930's.


Yours

Calley

dougk_2

There are generally the three kinds of valuation/survey.

1) Basic valuation - designed to satisfy the leneder that the house is "safe and sound" and worth lending the money against. It will highlight any major problems. The lender may or may not send you a copy of this. Circa £200 - £300 (or free with some lenders)

2) Basic Survey (often called a home buyers report) - Designed to provide a more thorough inspection of the house and highlight major and dsignificant problems (such as roof problems, damp, movement etc). Some things are always unchecked such as electrics, central heating etc, however the surveyor will often note things he finds like old sockets or old radiators. Circa £400 to £600.

3) Full building survey - a Full health check and detailed inspection. Although again electrics and central heating systems are not inspected as these are specialist areas.
Circa £600+

Prices vary depending on the value and location of the property and the lender or surveyor used.

The age of the property is not an indication of the type of report to have, although obviously the older the house the more chance there is work required.