Buying part of flat from family member

smiffy12_2

Hi all,

Was hoping for some advice for what, at the moment, is just a hypothetical thought by my Auntie.

She owns a flat in London, worth approx £700k, she's 55 and semi-retired. she wants to relocate to the country but doesn't want to sell her flat (entirely). My girlfriend and I are FTBs with £30k in savings and can borrow around £280k.

My question would be is it possible for us to buy part of her flat to live in for around £300k? or would there be issues in obtaining a mortgage for the share of the property?

marksoton

Not going to happen.

davidmcn

You can't get a mortgage for part of a property - how would the lender repossess and sell that?

smiffy12_2

not sure tbh. Assumed the 3 of us would be jointly liable. Thanks for advice

Will nip it in the bud

Mossfarr

Why don't you just rent it from him?

xylophone

Would your aunt consider you as caretakers for the flat at a low rent to enable you to continue to save for a property of your own?

Person_one

If she wouldn't be living there but you will, you don't want to buy part of the flat, you want to become a joint owner of the whole flat, which is less impossible!

Go to a mortgage broker, all of you together, to talk through the options. Make sure you discuss all possibilities including but not limited to; any of you not being able to pay your bit of the mortgage, your aunt needing care, your aunt wanting to move back to London, you and your girlfriend separating, any of you dying, any of you wanting to sell up to release the equity, any of you needing to go bankrupt.

smiffy12_2

No I don't think that's an option for us unfortunately

PasturesNew

The real problems in life aren't caused by trying to achieve what we want, but trying to get out of it at a future point.

Many times we wish to "move on" in life, often not for great reasons - which is when selling any property becomes a pain in the butt.

You have to think not only of your own life/dreams, but issues that could arise from co-owning a property with somebody else - and, for the future, what happens if one of you wants to sell up and the other can't/won't.

What if ... your aunt took to suddenly and randomly turning up to stay there "because it's her flat too" and spends her entire time moving things around and complaining about the way you've decorated, maintained, changed it...?

What if she decided she hated her new life and just moved back in?

What if you needed to sell - and she didn't want to let it go still? It could cause a huge rift as you argue the toss, knowing somebody'd "lose". What if you won and it was sold and she was beside herself with grief as it held so many happy/past memories?

Never mix family/property/money.

getmore4less

If she does not need the money you could buy 1/2 the flat with her as the lender and just pay her back monthly.

does not solve any of the logistical issues people are raising just the how to raise the funds one.


being part owner it solves all the landlord/tenant issues as well.

AdrianC

smiffy12 wrote: »

not sure tbh. Assumed the 3 of us would be jointly liable.

You COULD become a joint owner of the entire flat, and "buy in" for part of the full value. Good luck finding a mortgage that doesn't require all owners to be borrowers.

Why doesn't she want to sell the flat? Thinking of it as an investment? She'd certainly be able to get better income from selling the flat and investing the proceeds elsewhere, but I suspect she's thinking of future growth. That may be substantial, it may be minimal. It may be negative. My crystal ball is not giving my any reliable information at the moment...