Purchasing a share of a home.

alanlw1964

My daughter and son in law are in the process of filing an "amicable" divorce. ( if that is possible ).
The equity in the home they own and the mortgage owing is approximately a three way split on the total house value , with the mortgage now being around a third of the value of the house . I was wondering if it would be a good idea for me to purchase the son in laws  stake in the home, this would allow my daughter to stay there without the necessity to sell the property. I would then have a third share of the property.
Do any members have any suggestions as to the steps I should take to achieve this and what legal steps I should take to protect my interests and what would be the pro's and con's of such a decision.

-taff

You're better off asking on the mortgages board for specifics about having a joint mortgage with your daughter and the pros and cons.

It sounds like a good idea in theory but the pitfalls are numerous. What happens if you go bankrupt or she goes bankrupt, what happens if you need care, what happens if she decides she wants to sell and you don't, what happens if she marries again, or if she dies...There are a lot of variables to think about protecting against. It's just not as simple as owning the house together.

gettingtheresometime

It might be an idea for the mods to move this to the house buying section but as far as I understand it, the house would effectively have to be sold & then you & your daughter have to buy it so it's not as simply as you buying your soon to be ex son-in-law out & you continuing the existing mortgage 

also, presumably you already own your own home so you'd have to pay the extra 3% stamp duty on your share.

if this is a road you decide to go down I'd have a word with a solicitor so all the legal implications can be covered as well as a mortgage broker to see the best options open to you

Mojisola

If you have the cash, you could loan your daughter the money and put a second charge on the house to protect your money. 

alanlw1964

Thank you for your help Mojisola, Gettheresometime and -taff. All helpful comments.

justworriedabit

Mojisola said:

If you have the cash, you could loan your daughter the money and put a second charge on the house to protect your money. 

Having read the OP post that was my exact thought. IMO. bestest way forward and this will not have an impact on any care home fees, etc, etc until house was sold.