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Buying 2nd property with sibling
DubblyDubbly
Posts: 11 Forumite
1st son owns his house outright and wants to buy a second to either live in and let his first or vice versa. 2nd son is off grid, no recognisable income and travels and won't be settling down for years. 2nd has £120k to put towards a house purchase. 1st has £150k and can borrow up to 200k and will be in a position to repay his sibling £120k in less than 2 years. Plan is to buy a £350k property. I assume 2nd son can't be on the mortgage as zero income. How does he get recognised as part owner, by deed trust? Sharing income from the let and expenses will be complicated maths but doable. Any obvious pitfalls?
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Comments
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Yes. Buying a property with family is usually always a bad ideea.DubblyDubbly said:Any obvious pitfalls?1 -
2nd son will be bought out within 2 years so it will have to turn sour pretty quickly0
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Provided the combined income of the two mortgage applicants is sufficient I believe they Can both be on the mortgage and buy the property jointly. Compare a married couple with only one working?But jointly managing a letting business.......??And if S1 plans to buy out S2 in 2 years anyway, what's the point of buying jointly?Post 7: New landlords (1):advice & information :see links in next post
Post 8: New landlords (2): Essential links for further information
Post 9: Letting agents: how should a landlord select or sack?
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With the deposit coming from a relative, with no income and living 'off grid', can be prove the money came from legitimate sources?
If he is to be on the deeds, he needs to be on the mortgage.
A declaration of trust would protect 2nd son's deposit, but not many lenders like a deposit as a loan, usually a gift.
Declaring the money as a gift, when it's a loan, is application fraud.
Mortgage started 2020, aiming to clear 31/12/2029.0 -
Thanks for the links. S1 needs S2's money now for the purchase S1's income and deposit won't get a decent property and doesn't want to wait 2 years until he's got enough to buy solely.0
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A loan from B1 to B2 which doesn't require repaying until house is sold, and a charge against the house.I have similar with my daughter, she has the mortgage I dont and I'm not on the deeds.Only a few lenders are happy with this though.0
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