Tenants in common renovations mortgage?

Skyeyez

Good evening,

Is it possible for one tenant in common to obtain a mortgage for renovating their share of a property?

My partner is looking to purchase 20% (in cash) of the cottage we live in, which is owned by his Aunt. The place is a Grade II listed thatched cottage, 500 years old and run down and we would like to extend and fully renovate it over the next couple of years to make it a properly functioning family home.

Would it be possible for him to borrow against his 20% share of the property as a tenant in common?

Thanks!

MWT

Any normal lender is going to want a first charge over the whole property,  as in the case of default they will not want to be left holding 20% of something they can't sell...

I'm sure one of the brokers will be able to comment if there is a lender out there willing to accept a minority ownership as security...

K_S

@SkyeyezWhere properties are co-owned (joint or TIC), the mortgage will need to be in both names. One co-owner can't raise capital on their share alone. At least that's the case for normal mainstream mortgages.

I'm not arrogant enough to say it's impossible, as you can potentially get second charge loans even on shared ownership properties where the housing association is a co-owner but not party to the loan. But it isn't something I've come across.

getmore4less

There are products where all owners are not party to the debt but the whole property needs to be put up as security.

Skyeyez

Thanks all for clarifying this!