Mortgage help please - my family is gonna get made homeless

grumiofoundation

SouthLondonUser wrote: »

Don't confuse the OP with wrong information!

Assuming we are talking about England, the 3% extra stamp duty applies if you end up owning more than one property, not if you owned one in the past! You can buy and sell 10 properties one after the other, and never pay the 3% extra, as long as you own one only at each moment in time.

There are certain advantages that apply to first-time buyers only, but that's a different thing to the 3% extra.

It's all explained very clearly on the official website

https://www.gov.uk/stamp-duty-land-tax/residential-property-rates

Yep should have clarified meant if they wanted to buy an additional property while still owning a share in the current property.

Smissah

Update:

I can’t edit the post


They’re planning to ask the landlord to lower the price of the house on paper so we can get the loan from the bank with the salaries we’ve been able to combine. It doesn’t look like we can get a lot from the bank. So we needed 40£k more to give to the landlord as cash (for the rest of the actual amount of the house). Thanks for the messages so far

I just wanted to add that while we might not be homeless, it’ll displace the whole family. Commuting to work/finding new work. My dad is also a major hoarder so the notion of motion is an immense challenge. They are both all and I doubt my mum would get any better work. I would also have to get a new job. The way it’s all panned out makes it look like I’m shooting everyone in the foot.

This loan shouldn’t effect my first time buyers perks

Candyapple

Smissah wrote: »

Update:

I can’t edit the post


They’re planning to ask the landlord to lower the price of the house on paper so we can get the loan from the bank with the salaries we’ve been able to combine. It doesn’t look like we can get a lot from the bank. So we needed 40£k more to give to the landlord as cash (for the rest of the actual amount of the house). Thanks for the messages so far

I just wanted to add that while we might not be homeless, it’ll displace the whole family. Commuting to work/finding new work. My dad is also a major hoarder so the notion of motion is an immense challenge. They are both all and I doubt my mum would get any better work. I would also have to get a new job. The way it’s all panned out makes it look like I’m shooting everyone in the foot.

This loan shouldn’t effect my first time buyers perks

Why do you keep repeating the same thing again and again?

You don't need to edit posts, just write a new post each time someone asks you something!

Until you answer the questions, no one can advise you accordingly.

Lungboy

Smissah wrote: »

They’re planning to ask the landlord to lower the price of the house on paper so we can get the loan from the bank with the salaries we’ve been able to combine. It doesn’t look like we can get a lot from the bank. So we needed 40£k more to give to the landlord as cash (for the rest of the actual amount of the house).

The owner is going to pretend to lower the price so you can afford a mortgage and then you make up the rest in cash? That couldn't possibly go wrong....

As others have said, you need to find out what type of tenancy your parents have. It could well be so old they don't have to move anywhere. Even if it's not, the owner could sell the house with your parents as tenants.

silvercar

The owner is going to pretend to lower the price so you can afford a mortgage and then you make up the rest in cash? That couldn't possibly go wrong....

Most of the risk is the owners. He would also have a lower liability for capital gains tax.

Smissah

Candyapple wrote: »

How old are your parents – will they even be able to get a mortgage? Or is your uncle proposing that the mortgage be in your name and your parents pay you rent/the mortgage?

This is a bad idea all over.

You’ve been told to take out a £15k loan? But yet you don’t earn a lot? Yea that’s not going to happen and your family are living in dreamland.

Are you and your girlfriend actually still living with your parents?

Can your parents not downsize and find somewhere else to rent?

my dad is 60 and my mum is 57

they are currently looking to have my older brother (27 going from job to job but is looking to move to home town/home to get a career and save), younger brother (in his final year as an apprentice at a well-known car brand) and mum (old, manager of local university cafe) on the mortgage because I refused.

I'm on £24k, relative to my friends, it's not a lot. I think all three people above earn less than £20K.

The girlfriend and I live in our respective homes

maybe I could just move out so they can downsize? but it will effect work situations for all of us (with that said, I understand it's not really my responsibility). Renting elsewhere should have been the only choice but I think the uncle planted this idea into my parents head. While it is better to buy, the uncle didn't factor in our financial status and my parent's/dad's complete failure to plan. It's an unfortunate position to be in because I guess they didn't foresee it but still, failure to have any kind of savings is not cool. I feel like a real villain though because my younger still and brother are affected too - they are cool young to be moving out and stuff

SouthLondonUser

Where is the property?
What's the local real estate market like?
How much is the current rent?
How much would it be to rent a comparable property?
How much does the landlord want to sell for?
How much would it cost to buy a comparable property?

How about renting elsewhere then buying another property after a little while? Sure, moving costs, but so does rushing into a purchase without thinking it through.

You can't just say that renting is wasting money, and use that as the reason to buy this property no matter what! You must think of all these other points, too.

PS BTW,renting isn't always wasting money! Over a very long period it tends to be almost always better to buy a property than to rent it. Over short and medium periods, it depends.

Smissah

SpiderLegs wrote: »

just because the LL sells the house doesn’t mean you will be homeless.

Why do your parents want to buy it?
If you get evicted why not go rent somewhere else?
How would this 15k loan get paid off?

Yes of course it will impact on your ability to get a mortgage.

It all sounds like stupid idea tbh

it never occured to them to buy until my uncle (who owns two homes) suggested it. I think they've got tunnel vision for an opportunity that has long passed

you have accumulated 20ish years worth of STUFF in the house - I think the mission of having to move and find new jobs makes it not appealing

dad failed to answer how they'd pay for it. It would be mortagage repayment, plus my 15K debt and the remaining debt of 25K that dad plans to cover. He stopped working about 3 years ego because of depression from deaths in the family.

it's wishful thinking at this point

Caz3121

do they get any help with housing costs currently?
with the current rent figure, are they able to amass savings?
will the mortgage etc be higher or lower than the current rent?

DCFC79

Smissah wrote: »

I'm on £24k, relative to my friends, it's not a lot. I think all three people above earn less than £20K.

It's an unfortunate position to be in because I guess they didn't foresee it but still, failure to have any kind of savings is not cool. I feel like a real villain though because my younger still and brother are affected too - they are cool young to be moving out and stuff

£24k is a decent amount (but it depends where you live) even better if you can combine it with your girlfriends salary and you can get somewhere decent.


Your 2 brothers will be fine with moving.

Why would new jobs need to be found ?
Look for a new property that's nearby.

Re the hoarding its better he gets rid of stuff now.


Don't lend them the money, your wanting to get your own place.