Morgage help... do I do this and risk everything....please help

Blownmind.com

No I have never done anything like this before long story short... my partner and mother fell out 2 years ago and will probably never talk again not good I no... back to the real issue
My mother split with her partner 3 years ago sold the house they owned and the money is sat at solicitors. She lives with my sister in her partners old house which they are both on the morgage (he lives somewere else) but he has just offered her a deal he gets the house and she gets the money.... (awsome yes) hmmmm yes but no.... she is 50 can't get off the morgage she is on as he hasn't the money to remortgage it on his own nothing can be done untill the house is sold which he won't do.... so she gets the money but can not get a morgage on her own so what the hell does she do with it... buy another house right.... well she is struggling to get the morgage she needs on her own aswell as she is still attached to the other one... sooooo me being my usual try fix everything self discussed with my partner about me getting a morgage with my mother now as you can imagine he wasn't best pleased as stated above they do not speak... but he said do what u think is right... so I went ahead and told my mum my plans and went to see a financial advisor with her the other day... got home told my partner what had been said and we'll he ain't amused at all.... we were trying to sort our relationship out over other things over the past year and now I have done this thinking he wasn't happy but ok with it all I wanna do is help my mum she hasn't got parents or any other family... so my question is... is there anyway she can help herself in anyway without me doing this....(I am not sure it is gna help my relationship with my partner now) feel like I constantly let everyone down always doing the wrong things choosing the wrong options in life I don't want to destroy my life or let my mum down.... she can't do shared ownership as you can't do that if it is your second home.... what other options is there??? Any adevice is much appreciated xx

SavingSteve

Your mum is a grown woman, don't ruin your own relationship over the fact that she has a failed relationship.

SavingSteve

The simple answer to the question is surely that your mum should take the money and just rent. Don't see why you've over complicated it.

PasturesNew

You have probably the most awkward and unusual situation there... everybody's linked to others and it'll only end in tears...

But, without figures, nobody can really help.

I am not even sure I understood.

Mum: Has money sitting in a solicitor's account after sale of 1/2 a house. How much?

Sister: Has no house, but the chance of a cash payoff for her to move out of her ex-boyfriend's house. How much?

How much are houses where you live? e.g. load Rightmove and key in the place and add a radius of, say, 10 miles, then find the three cheapest - how much is the 3rd cheapest house (not shared ownership, not derelict, not auction).

You shouldn't get involved though.... you'd potentially be adding to the confusion and mess.

In short: if your mum and sister pooled their money, how far short are they of buying a 2 bed house within 10 miles?

It might just be easier for them both to go onto all the housing association renting lists and wait it out - depending where it is in the country and the size of lists.

Or maybe there's a shared-ownership option that pops out of the woodwork.

But you shouldn't be trying to get a mortgage with your mum, as that just sounds like you're panic buying and will end up regretting "buying in haste".

Blownmind.com

My sister is 16 so can not help...
It is her dad and our mum who own the house...
He has offered mum the money and he gets the house but she can't get off the morgage as he can't get one on his own...
She will have 90 000...
Houses in our area are least 150 000 or need alot of work doing to them...

SavingSteve

90000 pays for a lot of rent. You seem to want to completely ignore this suggestion

silvercar

No point taking the money unless she can be released from the mortgage. Otherwise she has a big liability for that mortgage that (a) will effect her ability to get another mortgage (b) will mean she pays an extra 3% stamp duty if she buys another property (c) will be liable for the mortgage payments if he ever doesn't pay (d) will be linked on credit reports with her ex partner going forward.


So she isn't actually getting money, she is getting liability for a mortgage on a property she won't live in.

For similar reasons you don't want to be on a mortgage on a property you don't live in. You will have a big liability for that mortgage that (a) will effect your ability to get another mortgage (b) will mean you pay an extra 3% stamp duty if you buy another property (c) will be liable for the mortgage payments if she ever doesn't pay (d) will be linked on credit reports with your mother going forward.

So you can see the downside, which will impact on you getting a mortgage and on your finances in general. No wonder your partner isn't keen!

I'm not even sure how easy it will be to get a mortgage on a property you won't live in.

Thrugelmir

Blownmind.com wrote: »

He has offered mum the money and he gets the house but she can't get off the morgage as he can't get one on his own...
She will have 90 000...
Houses in our area are least 150 000 or need alot of work doing to them...

Then little point in pursuing this option. Move on with an alternative option.

Blownmind.com

Yer it is steve but that's all she has this was her inheritance and she would like something for her money at the end instead of spending it all

SavingSteve

Let me get this right. Let's assume for one second your mother actually has two options (I don't think she does, but just for arguments sake).

Option 1 - take cash, have that money available to help pay any excess of rent compared to what she would pay on a mortgage, leave nothing behind as inheritance to her kids

Option 2 - drag others into her financial mess, possibly ruining those others' relationships in the process, have something to leave as inheritance to her kids

Is owning that asset really worth it? To her or to you?

exiled_red

I am somewhat confused by your original post, you say that there is money at the solicitors from the sale of their house and your mother lives in her ex partner's house. The deal is he gets the house and she gets the money. Presumably this means that he gets the house that she is currently living in and she gets the money from the sale of the other house?

Firstly how does this look as a deal how much equity is in the house that your mother currently lives in and how much money is there from the sale of the other house? Presumably a fair split would be something equal to half the money and half the equity in the house is this equal to the £90,000?

If neither your mother nor her ex partner can afford a mortgage on their own then it seems unlikely that the house will ever be sold and that this deal will ever happen (unless both keep their names of the mortgage which your mother definately shouldn't do), the only other thing to do is force a sale and disconnect themselves finanically.

You say that your mother wouldn't be able to get a mortgage would this still be the case if she was removed from the current mortgage and had a £90,000 deposit. If so the only options are to rent, move in with family or find a house that she could buy with the money that she has.