club together mortgages!

bhindi

Hiya,

Please could you tell me if this is possible.


A friend is selling a property that my stepson would love to have, however he cannot afford it by about £15'000,. His father and I are in a position that we could afford to buy outright the share he cannot afford. Alternatively to get a mortgage on it. he might pay us back by just paying a rental for our share.

I thought I read that this sort club together buying is on the increase due to the difficulty people have of affording homes, so I am hoping we wont be laughed out the door.

amnblog

There are some solutions to this scenario depending on the figures involved.

What you describe above however, would not be acceptable to mortgage lenders as outlined above.

Some Lenders will allow you to secure your funds via a charge on the property. Others will hold your funds in liew of deposit and pay you interest on them.

Consult a good mortgage Broker.

bhindi

Hiya, Are you able to elaborate why its not okay. Would it be workable if we actually took our share out as a mortgage instead?

Approx the property is worth £110'000. Chris is allowed a £82'000 mortgage, and has a £10'000 deposit. So he is £18'000 short. We are happy to help make a loan for the differential but need to find a legal way to retain ownership of that investment.. What other ways is there please. I would rather not involve a broker until I have some understanding of what the options are as I know I will feel rushed/rail roaded into progressing but I want to contemplate all our scenarios before I get introduced to a new set.

Thanks

Let_Us_See

You have quite a few options depending on your age, income, existing financial commitments, existing home owner, additional stamp duty etc etc.


However, too complicated to explain on this forum, so find yourself a broker, and they will explain your options.