London property with sibling

Annisele

Sashkinson wrote: »

Inheritance basically refers to a gift from parents so technically it is their money, hence the understandable desire to control what this goes on / invest it in property that they consider to be a sound investment.

Ohhh - I think that puts an entirely different spin on things.

If your parents are essentially saying "you can have £250k each but it comes attached to these particular strings", then you have to decide if you can live with the strings.

If I were in the scenario you described at first (as the higher earner with an inheritance of £250k) I'd almost certainly decide to buy on my own. I think your actual scenario is much trickier.

As others have said, you, Sibling and parents ideally need to discuss what you'd want to happen in all the scenarios you can think of. Death (of any of you), marriage, divorce, illness meaning you can't work, fantastic job offer abroad, etc etc.

It might also be worth considering having the house be in your parents' names, and let to you and Sibling. There are lots of disadvantages to that plan (and it may not even be possible depending on your parents' circumstances) but it's an option that wouldn't have been available in your first scenario.

JayRitchie

Do either of you have expectations of significant pay increases in the future?

Cakeguts

If you have demanding jobs and work long hours do you want to spend all your time off looking after a garden or would you rather go out? If you don't want to look after a garden and arrange maintenance on a house in your time off buy a flat. If you buy a flat maintenance is covered by your service charge.

G_M

So not an inheritance at all then.

Marvel1

Seen enough posts on here that it' bad idea to buy together.

I wouldn't even rent a room to them either, business and family don't mix, easy to evict a stranger than a family member.

Sashkinson

G_M wrote: »

So not an inheritance at all then.

No, not quite - I was trying not to be too outing for various reasons - sorry for the confusion.

Sashkinson

JayRitchie wrote: »

Do either of you have expectations of significant pay increases in the future?

Yes, the 44k is likely to increase to 60k in the next 10-16 months.

ibizafan_2

My son and his best friend from university clubbed together to buy a two bedroomed flat in Clapham in 2008. My son earned less than his friend at the time and he struggled with his share of the mortgage in the early days. Fast forward to now and his salary is now six figures and he easily bought his friend out a few years ago when he left to get married. I was a bit worried that they didn’t have some kind of legal basis at the beginning, so although I wouldn’t advise going along this path without one, it can work out and it seems to be a common way of getting on the ladder in London. Incidentally, the flat which they initially bought at £315,000 is now worth £650,000ish, so it was a good investment.

robatwork

WRITE DOWN every combination of things that could happen and what you will do in that event. Eg
S1 meets someone and wants to move in
S1 meets someone and wants them to move in
S1 gets an illness and wants to move back to parents
S2 gets a job offer in New York
S1 & S2 have huge bust up

you really need to consider and agree on what will happen for every conceivable scenario. If S2 won't discuss these and agree then you have your answer.

JayRitchie

Sashkinson wrote: »

Yes, the 44k is likely to increase to 60k in the next 10-16 months.

Cool - that makes a significant difference. The sibling who increases there pay to £60k would probably be ill advised to be sharing ownership. Assuming the lower paid sibling is not expecting substantial pay increases they might well find it a good option.