Mortgage and Ownership issue...help?!?!

Adia1990

Hi all,
I'm new to this site and this is my first post, I actually signed up to see if anyone can help me or to see if anyone is in a similar situation like I am and how to deal with it. I've been going around in circles and its really just starting to cause me some stress.
So to cut a long story short, many years ago my father bought a property, he done so in me, my mother and brothers name legally. So all three of us own the property on paper. Were unsure of the split but if we was to go based upon how much we each paid, I would own around 16%.  Off paper he would like for me and 3 siblings to share from it whatever its sales value is. There is no mortgage on the house.

Now that I'm older and married and have been saving with my wife, we are looking at places to buy. However, my brother is now moving into the property and will no doubt would like to release equity or remortgage in order to pay us off (im aware there are tax issues surrounding this). my issue is, if I was to apply for a mortgage with my partner, what mortgage would i qualify for as technically im not a first time buyer. I cant get a buy to let as the property would be my main residence. i have thought about doing a transfer of equity however this costs quite a bit but if its the only way i will get on to it ASAP. Also now would be a good time esp if stamp duty holidays are coming in. 
can anyone help, happy to answer questions.

Thanks

KatrinaWaves

You would just apply for a normal residential mortgage, which will depend on your deposit and LTV. 

Adia1990

KatrinaWaves said:

You would just apply for a normal residential mortgage, which will depend on your deposit and LTV. 

Thanks, whenever I look into mortgages I see options like remortage, first time buyer, buy to let and home purchase which is moving home. Technically i wont have any equity from the previous house and would i be considered a home mover? 

KatrinaWaves

These ‘headings’ really make zero difference overall, home purchase or first time buyer etc. Different mortgage companies have diff versions of first time buyer.  Your situation is really not that unusual, I would probably call you a home purchaser, but once your brother buys you out you may fall under the banks ‘FTB’ category. 

The only place first time buyer status holds sway is with stamp duty, and you won’t won’t qualify for FTB status for that. 

Adia1990

 KatrinaWaves said:

These ‘headings’ really make zero difference overall, home purchase or first time buyer etc. Different mortgage companies have diff versions of first time buyer.  Your situation is really not that unusual, I would probably call you a home purchaser, but once your brother buys you out you may fall under the banks ‘FTB’ category. 

The only place first time buyer status holds sway is with stamp duty, and you won’t won’t qualify for FTB status for that. 

Thanks, that helps i may book an appointment with the Bank or even a broker and see what they say. 

greatcrested

Let me focus on some relevant parts below:

Adia1990 said:

Hi all,
I'm new to this site and this is my first post, I actually signed up to see if anyone can help me or to see if anyone is in a similar situation like I am and how to deal with it. I've been going around in circles and its really just starting to cause me some stress.
So to cut a long story short, many years ago my father bought a property, he done so in me, my mother and brothers name legally. So all three of us own the property on paper.

"on paper" suggests another option whic does not exist. The property IS owned by you, your mother and 3(?) brothers.

Were unsure of the split but if we was to go based upon how much we each paid, I would own around 16%.

Do you own as

* joint tenants or

* tenants in common?

If TIC, is there a Deed or agreement regardings shares?

If not, how much exactly did your father pay? You pay? Your mother pay? Your brothers pay?

  Off paper he would like for me and 3 siblings to share from it whatever its sales value is. There is no mortgage on the house.

You can choose to comply with his wishes,or to ignore them. It is not his property.

Is your mother happy to give up her share?
Now that I'm older and married and have been saving with my wife, we are looking at places to buy. However, my brother is now moving into the property and will no doubt would like to release equity or remortgage in order to pay us off (im aware there are tax issues surrounding this).

Depending on the amounts, he may have SDLT to pay on his purchase.

Is he a FTB?

How much is the property now worth? You'll need toknow that as wellas the proportions you each own to work out how much he should pay you each.Unless you agree toabide by his wishes and your mother agrees.

my issue is, if I was to apply for a mortgage with my partner, what mortgage would i qualify for as technically im not a first time buyer.

Nothing 'technical' - you are NOT a FTB for SDLT purposes (though may be for some mortgage purposes as you have no existing mortgage).

I cant get a buy to let as the property would be my main residence. i have thought about doing a transfer of equity however this costs quite a bit but if its the only way i will get on to it ASAP.

Not sure what you mean or why it would cost. Your brother would pay you the agreed share which is added to your savings tomake your mortgage deposit.

Also now would be a good time esp if stamp duty holidays are coming in. Ha! Ha! You think?

You will need toeither pay cash if you have enough, or apply for a standard residential mortgage. Variable rate, fixed term rate or index linked rate, whatever. Some lenders may offer a FTB mortgage if they think you qualify.

See an independant mortgage broker.

NB: ownership not clear: You say:

me, my mother and brothers name legally. So all three of us own the property on paper.

so 3 people own. Later you say

Off paper he would like for me and 3 siblings to share

so 4 (different) people.

How many owners? And how many other non-owners does father want to benefit (with the consent of the owners of course)?

TBagpuss

Of those headings I would go with Home Purchaser - you won't be eligible for any of the first time buy offers as you already own a property, which is the only reason it's really relevant, and once you start the full application you will give all the detais they need to make a decision anyway.