Deeds & Shared Ownership

dilemma10

Hi,


Wondering if you can help shed any light on a conversation I have just had with my Dad.


They own 50% of a property they bought 9 years ago in Leicestershire for £85k. Their half of the property has now gone up in value @ £99k. They have 16 more years left to pay the mortgage which is £370 per month but the rent on the other 50% is approx. £350. It is a lovely big house so only the monthly payments altogether are high I can see why they do it, but they do have a fairly average joint salary of approximately £36-40k maximum.


However, my Dad has approached me to see whether I would be interested in him mortgaging the other half and me paying into this - you would think this was a little audacious but I do earn a good salary (£60k) and have job security in the function I do. I currently do not have a mortgage and I do have surplus cash. In return they will write the entire house property over to me (although to be honest I am not interested in this as I see it, they are my parents and I don't want them to have to pay rent when they retire on the other 50%).


Questions:

1. Can my Dad take out the mortgage and I pay this (risky for him I know)?
2. How does mortgaging the other 50% work?
3. Does having my name on a deed for a house help me with my credit rating (which is not great for various silly reasons)?
4. How much, given today's interest rates would a mortgage over 16 - 20 years cost at £99k, I have seen a whole range of silly numbers floating about
5. Would there be an 'offer' price given they have paid 9 years' worth of rent into the property or is it solely dependent on the new valuation of the property?

Thanks in advance

NOVAMET21

Can't they apply for 100% ownership? Have a full mortgage but they might have to pay around £1000 rather than £720 monthly and depends upon their affordability.
I think they should be able to afford £1,000 per month mortgage on £40K. If they struggle why not help with your earnings of £60K. Not sure if you already own a house without mortgage but if you don't own any property then I don't know what you doing with that £60K.
Ask the housing association but as you don't live at you parents house, you won't be able to be in the deeds.