Advice needed on property with Annex and Parents Contribution

nothappy44

Myself and wife have found a property that we want to buy. It has an Annex attached to it which my in-laws are going to live in.

They are downsizing and are going to put in for the deposit on the new property. They wont contribute to the monthly mortgage but will live in the annex.

Our current lenders are saying that we need to include the in-laws on the mortgage. We don't have to take into account their income (as this will affect the term of the mortgage we can have) but we have to take into account their outgoings. This then makes it difficult for us to pass the affordability test, despite us being more than comfortable with the monthly payments.

Is this the norm or is this just something our lender is doing??

Thanks

AdrianC

If they're going to be joint owners, they need to be joint borrowers. If they aren't, they don't.

Not a perfect 1:1, but as a rule of thumb, it's basically there. I presume the "put in for the deposit" means they're contributing a significant amount of equity to the purchase, so are going to want to be reflected as joint owners...

hazyjo

If not joint owners, it might be that they're classed as dependants. Having my BF live with me and not be on the deeds/mortgage means he's a dependant and limits what I can borrow.
If I can't pay, it's me they come after. If joint, they would have him too. You're both taking responsibility for everyone. Which is exactly what you want to do, and wouldn't expect parents to pay the mortgage if you couldn't, so it's fair enough really.