Part buying mother's house.

jenkins100

My wife and I have been renting her mum's house for past 10 years.

We want to buy a share of it. This is the only home my mother-in-law owns.

For arguments sake; the house is worth 300,000 and we want to buy 50% of it.

We have a 5,000 deposit.

Joint income; 57,000 (both teachers)

My mother in law would expect some rent for the part she still owns.

It would be amazing if anyone could help answer a couple of questions.

Do banks offer this kind of mortgage? If so, how does it work, would my MIL have to be on the mortgage with us?

I really don't know where to start with this (so started here.)

Thank you in advance

getmore4less

Does she own mortgage/debt free.

She could lend you the money rather than borrowing from a lender.

selling would trigger a CGT calculation.

jenkins100

Our's is the only house she owns (she uses the rent we pay her to pay her own rent,) she'll be using the money from the part sale to us to buy her own place (in a cheaper part of the country.)

elsien

What would the arrangement be further down the line be if she needed to realise her assets? Would you buy the other half or would you have to sell up?

getmore4less

if she only sells part of it to you she will have the extra SDLT on her new place as that will be a second property.

jenkins100

If she wanted to realise her assets further down the line, we'd hopefully be in a position to buy.

I wanted to know whether these types are mortgages are common - would a bank lend to us in these circumstances?