Is this type of property purchase viable?

Kambucha

Hi There,
My mum is one of three children and they have inherited their mother's flat which is valued at 600k. Each sibling therefore has a 200k stake in the property.
My question is, could I buy out two of the siblings and let my mum keep her third and buy it off her at a later date when I can raise the remainder of the capital ?

foxy-stoat

If you can pay 2 lots of £200,000 in cash without a mortgage then yes, you will be added to the title deeds as tenants in common and a declaration of trust drawn up stating either percentage share or value - you need to make it very clear if your going to pay out another £200,000 cash in 5/10/15 years time irrespective of what the property is worth or 33% of what the property is worth when you do finally buy the final third.

Kambucha

@foxy-stoat what about if I need a mortgage to buy out the two lots of 200k ?

foxy-stoat

Kambucha said:

@foxy-stoat what about if I need a mortgage to buy out the two lots of 200k ?

Then your mum would need to be on the mortgage as well, it will complicate things.