Buying a house with parents (not living in it)

jojobeany

Hi,

I'm wondering if you can help with some advice. I am married, live with my partner but I'm not on the mortgage of 'our' house. It's my partners.

My parents are looking to move, and I am buying a house with them to give me some property for later in life. They live in it, and we each pay half the mortgage, while I live with my partner. I.e. They're using their equity from the sale of their current house for the deposit, and we will get the mortgage together. It's an investment for me (paying half the mortgage) and free's up some of their equity for later in life.

Potential family squabbles aside, when I approach Nationwide to start the application process they've said they're not sure it's possible.

Does anyone have any experience of this kind of situation? Is it only specific lenders that we can approach, or would a normal mortgage be okay? I assumed this would be fine, albeit naively.

Many thanks,

John

Cakeguts

https://www.ageuk.org.uk/information-advice/care/social-care-and-support-where-to-start/paying-for-care-support/deprivation-of-assets/

Why can't you just put some money into savings and investments?

alex_163163

Hi, can't add if its possible or not but have you factored the higher rate of SDLT into your financial calculations? You hadn't mentioned it in your OP so just wanted to raise it in case you hadn't thought of it yet.
Even though you do not own your current main residence, as you are married you are considered 'one unit' with your husband or wife, I believe. A married unit can only have 1 main residence, and any additional purchases by either member of 'the unit' will result in having to pay the higher rate.

Copied form the gov.uk website:
Married couples and civil partners who own one property at the end of the day of a transaction will not pay the higher rates of SDLT. However, if either of them owns more than one residential property they may pay the higher rates when purchasing another property.
The government will treat married couples and civil partners living together as one unit. This is consistent with other areas of the tax system including Capital Gains Tax private residence relief where married couples are entitled to relief on one residence between them.
This means that:
married couples and civil partners may own one main residence between them at any one time for the purposes of the higher rates
property owned by either partner (and any minor children) will be relevant when determining if an additional property is being purchased or not. Therefore, an individual buying a property may be liable for the higher rates if his or her spouse or civil partner has an existing residential property. If the spouse or civil partner then sells that residential property they may be able to claim a refund