Second house

Dannysmurf

Hi, I have a mortgage on my house with my Wife .

However my sister in law is in a really poor situation in which she has bought a house with her partner but they have just split up and he is considering forcing her to sell the house and as she cant afford the mortgage on her own/the bank wouldn't give her the money Me and my wife are considering 'buying out' his half of the house so we would take a mortgage for half the house with the other half owned by her sister.

We are in a position that we can afford to pay the mortgage on her property as well as our own and when we bought our house (a few years ago) the AIP would have covered the amount needed for both and we now earn about 10k more between us.

So how would it work? Would they have to sell the house and then re-buy it? etc.?

00ec25

you cannot have separate mortgages on the same property

either sister has to be on the same mortgage with you, as all owners need to be party to the loan - which from what you say can't happen as she cannot afford it,

or

you will need to pay off his and hers entire mortgage and then take ownership of whatever share of the property you and sister decide is now fair to you, given what you are going to pay to clear their mortgage (>50%??). You will then of course be left with your own mortgage on a property you do not live in, which is occupied by someone who is its part owner. Such a scenario will make all bar a handfull of lenders refuse to loan to you, so you'll need to find via a mortgage broker to get one

or

again via a broker you may just possibly be able to stand as guarantor to your sister so she can borrow more than she can afford alone. That however is a complex scenario fraught with more problems than I'll cover here. She almost certainly won't like how much it will cost as a starting point...