buying half a house

confused0376

My issue is this. I am to be buying my friend's house, but the plan was to do it in two years when my fixed term contract becomes permanent (I work in education for the council). But it looks like for financial reasons she may have to look at selling the house sooner. She has suggested that I buy the house from her for half the value, essentially buying 50% of the property, and through a solicitor writing an agreement that I pay rent for the other 50% until either I buy the other 50% from her, or in 5 years, whichever suits us first. This benefits her too as the house is currently rented out, but she needs a lump sum to pay off her other mortgage that she lives in, but at the moment is relying on some form of rent to supplement living costs. Does anyone know if this is possible, or who we would talk to about it? We are in Scotland if that makes a difference. I know that she can sell the house to me for as much or as little as she wants, but I don;t want her to lose out on money, and in 5 years she will be looking for another lump sum from somewhere as her daughter will be heading to university. There is currently no mortgage on the property that I want to buy

G_M

Joint ownership of property is fraught with poblems.

but provided you anticipate every possible future scenario (including marriage and divorce and claims on the property by an ex!) and make provision for all scenarios, then it may work.

gettingtheresometime

Could you afford to buy the property without a mortgage?

I'm not sure there would be many lenders who would be wiling to lend on a property where by you'd only own 50% of the property without your friend being on the mortgage as well - would either of you want to be financially linked to the other.

Also how would you determine the value of the rented portion of the property? Now or when you came to buy?

teddysmum

gettingtheresometime wrote: »

Could you afford to buy the property without a mortgage?

I'm not sure there would be many lenders who would be wiling to lend on a property where by you'd only own 50% of the property without your friend being on the mortgage as well - would either of you want to be financially linked to the other.

Also how would you determine the value of the rented portion of the property? Now or when you came to buy?

If someone defaults on the mortgage for a complete property, the lender can repossess and sell on, but even if they could repossess half a house, selling on would be a huge problem.