Sell 1 Property to buy 3 - Very Complicated !!!! Help ...

0000o0000

Hi

I need some advise on my dead dead complicated situation.

We live as an extended family in a 6 bedroom, 4 Storey Victorian Type House. We being wife, I and our boys. My brother, his wife and his kids, and my folks.

This house is mortgaged and has about 50K left on it.

Anyways kids are growing up and stuff, so we were discussing the possibility of selling this property and buying 3 separate ones.

(These figures are examples)

Say we could get 450K for our current house - the split would be as follows:

• New Property #1: 150K - Therefore a 150K or cheaper house would be purchased. Cash outright.
• New Property #2: 150K - Therefore a 150K or cheaper house would be purchased. However half of the existing mortgage would be assigned here, meaning a 25K mortgage would be required.
• New Property #3: 150K - Probably look for a property ranging from 150K to 250K. Again half of the existing mortgage would be assigned here, meaning an approx 100K mortgage would be required.

Still awake???

Right - where the hell do we start????

I'm thinking we need a qualified mortgage broker to begin with. We then need to find 3 properties AND find a buyer for ours.

I've been thinking about this for over a year now but as it's sooooo complicated, we just shelve the idea.

Anyone got any ideas, opinions, advises?

dwsjarcmcd

Take it in stages.
1. House has £400k equity less costs of moving, decide how that will be split and agree that you will pay off the mortgage.
2. Put the house on the market.
3. Start looking for new houses, but do it as individual families, sounds to me like your trying to do it all.
4. Once each family has decided on their house, they know how much equity they have and how much of a mortgage they will need. Each family arranges their own mortgage.

PasturesNew

For "value for money", I'd look at whether the parents could live in an annexe to a main house. If that were suitable, then I'd be looking for one house at about £280-300 with a separate granny annexe. And a 2nd house with the remainder.

A house with a granny annexe will tend to be larger (4-beds, as opposed to 2 beds + annexe), thus giving you a chance to "host" family get togethers easily. With 3 small houses this could be trickier to choose which to go to.

Issues obviously are:
- how many houses in your area have such an annexe
- how much house prices cost with/without an annexe
- whether you could all agree who lives with who - and who gets their own house
- whether you're already fed up with the sight of each other and just meeting up once a year is (more than) enough
- how satisfactory this financial split would be. Implications of cost/worth now and in the future.

As for how you will be splitting the money from the current house, there must surely be issues over who put money in over the years. So, who owns it, how costs of improvements/changes have been split.

Going down the house/annexe + house route, you could buy the house/annexe cash and put all names as owners. Then you could put the rest of the money into the 2nd house and have the mortgage just on that one house. Again split with all names maybe

yus786

Wow this IS complicated.

I had a friend in a similar pickle. He sold his house and bought 2 smaller ones.

However there was no mortgage involved and the 2 house he bought were someone's second house meaning they were empty, so no 'timing' issue.

I hope you the best and keep us posted.

silvercar

Its just not going to be possible to sell the one and complete on three new ones all on the same day. Think how you are going to manage in the interrim.