What advisor?

Samc7825

Hi,

My husband and I are looking for a bigger house (yay!). Having recently lost my mother in law we suggested to father in law that we could get somewhere with an annex (or extend) so he isn't alone in the coming years.

He is more than happy with this, which is great. However, the more I look into this online, the more questions it raises.

I now realise that we need to have a discussion with a financial advisor with regards to:
1. The issues of an annex being an entirely separate part of the house in respect of council tax.
2. The implications of buying a house as three people where two have a mortgage and one does not.
3. The question of FIL having a stake in the house (or not) and what that means for him.
4. A plethora of other questions that pop into my head all the time!

Father in law has left everything to husband and I to arrange (he has lost all confidence in himself to make decisions) and I want to consider the best options for all involved. I.e. I don't want to do something that benefits husband and I, but disadvantages FIL.

Long way around but the question is: what type of advisor do I need? 

I am thinking a tax specialist and a mortgage advisor but have no idea. If I need two different types of advisor am I better going to different independents, or a firm that covers multiple areas.

Thanks in advance.

K_S

@samc7825 Sorry if I'm staying the obvious, but a mortgage adviser for the mortgage related aspects of your questions.

Quick thoughts -

1. For ease of a mortgage, you want the annex to be part of the same address. Not all lenders will lend on properties with self contained annexes, but there are plenty that will.

2. For the widest choice and longest term, it would be best to only have yourself and husband on the application and deeds. If your FIL needs to be on both, there are a few lenders who will ignore his age for the purposes of term if his income is not being considered. Some lenders will also allow him to contribute to the deposit in this scenario.

Obviously the above is just a few of the mortgage related considerations and doesn't touch upon other aspects.

Samc7825

Thanks. I am erring away from a self contained annex tbh. Shared kitchen seems best to me, it's as easy to cook for 5 as it is 4.

Don't think FIL will be on the mortgage but would like to be on the deeds. Especially as it is likely we will buy and extend and he would ideally fund the extension (which is where the tax implications come in I think?)

K_S

@samc7825 Generally speaking, with standard residential mortgages, you can be on the mortgage but not on the deeds, can't be the other way around though.

[Deleted User]

You'll need a lender who allows more than 2 people to be on the mortgage and who doesnt have an upper age limit.   This will still allow you to be taking a longer term to suit your needs but keep FIL happy that he is on the deeds.   If either yourself or FiL dont want him to be on a mortgage then he isnt going on the deeds either.