Can I use the difference between past and current value of the property as deposit ?

dtr83

Hi
I would like to ask if someone has any knowledge if below scenario will be possible to do.

I live in the property which is on interest only mortgage from 2005 - value of the property at that time was 150K.
Current value of the property is 200K
Im able to buy a property worth 200K only if I have 50K deposit.
My question is:
Can I get shared mortgage with my current landlord for the 150K where the difference between value of interest only mortgage and current market value can be used as a 50K security deposit ?

I would like offer my landlord to have 30% share in his property and pay him 30% of the current rent plus 100% of the mortgage.

Please help.

Regards

DTR83

AnotherJoe

A legal and financial nightmare in the making.
Even if you can do it, dont.

dtr83

Why not ?
Currently I can see it as only one option.

davidmcn

dtr83 wrote: »

Why not ?

Because no lender is going to give you a mortgage over 70% of the property.

ACG

Knock it on the head, its not going to work.

I am assuming your landlord is a relative or friend as no landlord in their right mind would agree to it.

As has been said, it would be a legal nightmare and so no lender would look at it in a million years.

dtr83

davidmcn - -property value is 200k so i want to get 75% of value as a mortgage - 25% is 50k which is a difference between current market value and option to buy from interest only loan.
Ifvproperty was worth 150k - years ago when landlord get interest only loan - is mean he can buy it now at an ttime for 150 regardless of the current market value - is yhat correct ? -"if yes - can i have shared mortgage with him for 200k - where differencebin the valueis used as 25% deposit ?

thanks
Dtr

dtr83

ACG wrote: »

Knock it on the head, its not going to work.

I am assuming your landlord is a relative or friend as no landlord in their right mind would agree to it.

As has been said, it would be a legal nightmare and so no lender would look at it in a million years.[/QUOTE
why thisvwill not work ?

He is not family member - he is just a guy with with portfolio of over 5m properties with interest only mortgages.

csgohan4

good luck finding a lender who will do this.

dtr83

ACG wrote: »

I am assuming your landlord is a relative or friend as no landlord in their right mind would agree to it.

why you think that ?
- atvwhich point that propsal isvwrong for landlord ?
- im paying the full mortgage and he is still ending with 30% of property share -and getting extra income of around 250 a month from renting of his part.

dtr83

csgohan4 wrote: »

good luck finding a lender who will do this.

This is not about findingbyhe the lender - this is about:
- is it legal ?
- is it make sens ?
- is it possible ?

csgohan4

dtr83 wrote: »

This is not about findingbyhe the lender - this is about:
- is it legal ?
- is it make sens ?
- is it possible ?

Then where are you going to get 150k as a mortgage? you need a lender no?


Why would you enter in a shared ownership with a LL?. If either of you default on the mortgage it would affect both of you