Can I get a mortgage with my Grandpa?

kellyM91

Hello!
I'm looking for a little advice please!
So I currently own my own home and have a mortgage on my own, I'm 26 years old on a salary of £18K and the max I could borrow was £67,500.
My grandma recently passed away and I have said to my grandpa that I will move in with him but the place he is renting is too small for both of us. He is 87 years old, owns his own home that he rents out and is retired but with his monthly in-comings he has a yearly salary of around £25K.
I would like to keep the house I am in now and rent that out and then get a joint mortgage with him. So we would both own a home that we rent out and then also own a home together.

I'd just like to know if this is even possible please, and if so, do i have to change my mortgage so I can rent my house out if i'm renting it to a friend?

Thanks very much

Oakdene

Someone will be along with a better answer than me but I tried to apply with my Dad so I could get a little more in mortgage amount but they would only lend to me over a shorter period of time up until my Dads 65th birthday.

~Beanie~

I think you will find that your grandpa is too old to get a mortgage.

ACG

Good question, if he was 10 years younger I would probably say yes. But at 87 I cant see how you would get a 25 year Mortgage - if nothing else other than most IT systems will be geared up to 2 digits for age at expiry.

The other thing is that it is unlikley he will be around in 25 years time. How will you pay for it? What will happen to his share? Will it go to his kids/other grand kids?

In principle I would say there is probably a lender who will do it, but I can not think of any off the top of my head. I think you need to sit down with a broker.

The other thing to consider is you are going to have to pay higher rate stamp duty. 3% of the pruchase price up to £125k plus 5% of anything between £125k and £250k.

Mojisola

Why not sell both and buy something outright?

Grandad will have a lump sum to enjoy; you can start saving what you would be spending on a mortgage.

Make sure you both make wills and are happy about what would happen to the house when the first of you dies.

If you have enough money between you, you could buy a 3 or 4 bed house and have a couple of lodgers to bring in an income.