Joint ownership with child question

grahamfromoldham

I'm hoping someone can help answer my question.

To help my daughter get on the property ladder I am considering investing in a joint-ownership mortgage with her on a 50/50 basis. I have paid my own mortgage off so would either need to re-mortgage or take out a new mortgage with her. The house we are looking at is £120,000. If, over 10 years I have paid £50,000 ( for arguments sake ) and my daughter has also paid £50,000 towards the mortgage and she decides to buy the house on her own and take me out of the equation, how much would I likely to get back from her?

Would it sound unreasonable to have a solicitor draw up an agreement where my daughter would pay me back whatever I have paid into the house/mortgage?

I am not looking to profit out of the house, but merely to help her get on her feet with things. I would however wish to get my money back to enjoy retirement!

dipsomaniac

you will need to decide how you will hold the property:

joint tennants - property will automatically pass to the survivor on death. tennants in common - deceased % will become part of estate.

your solicitor will go into more detail when dealing with the purchase.

if you were to hold the property as 50:50 tennants in common you will own 50% of the equity in the property. if things go wrong the house can be sold and you receive 50% of any equity or be liable for 50% of any debt if house prices crash.

if everything goes well and your daughter can afford to buy you out (and can afford mortgage) you can sell your 50% to her for anything upto 50% of the value of the property at that time. if you don't want to make a profit and the house has risen in value you sell it to her for the amount of money you have put in (maybe with interest).

don't forget to consider taking out life cover as you will have an issurable interest in each other.

grahamfromoldham

many thanks for the reply, I shall consider what options I have...Graham