Complicated house buying

katkatmachine

It’s hard to find a £280-300k flat/house in London that can accommodate you and your partner, and your parents. You have to look farther like zone 5 and up. Also, what if you and your partner have a child in the future, then you would need another room, so now you would need at least a 3 bedroom flat/house in case this happens.

[Deleted User]

I am another person that suggests that to have any chance of a workable solution you need to relocate.

And again, you seem to be looking at the future with an assumption that somehow you will be able to get another mortgage when you want your parents to move in the first flat, so you can get a place of your own. Its not impossible that you will have paid off a lot of the mortgage, but very difficult to imagine if none of you are high earners. Even renting a second place, it will be difficult to pass affordability checks if you have to pay a mortgage on the first place.

What happens if you have children and the expense that involves.

daga

I feel like we are drifting away from the subject. I appreciate your help but I asked only from point of view of lenders whether it's possible, not whether I'm going to have kids, move out of London etc. All I want to know is if me and my father as mortgage applicants would be a better idea then me and my partner with my parents deposit money. Me and my partner will live there until my parents retire. Me and my partner then either rent something until my parents die or buy if first mortgage is already paid off or can afford a second mortgage. Once my parents die, we move back into the flat or sell to buy something else.

steampowered

daga wrote: »

All I want to know is if me and my father as mortgage applicants would be a better idea then me and my partner with my parents deposit money. Me and my partner will live there until my parents retire. Me and my partner then either rent something until my parents die or buy if first mortgage is already paid off or can afford a second mortgage. Once my parents die, we move back into the flat or sell to buy something else.

The mortgage applicants have to match the owners of the house, and the lender will expect the mortgage applicants to intend to live in the property.

I'm not sure it matters particularly whether the house/mortgage and under you and your partner, or you or your partner.

It may be possible to get a mortgage on this property now on the basis that you, your partner and your parents will all live there initially.

You and your partner could rent somewhere else in future if you can afford to pay the mortgage and pay the rent. And so long as you appreciate that capital gains tax may be due if the first property is sold.

Getting a mortgage on this property and buying somewhere else would be difficult because:
- You would be unlikely to get a mortgage on a second property while paying the mortgage for the first property.
- You would have to save for a second deposit.
- You would get hit for higher rate stamp duty on your second property.