Buying girlfriends house

Gav1310

Hi

Looking to buy girlfriends house as we are splitting up

She owns the property and I have lived there since she bought it

Property cost £180000
She paid deposit of £90000
She has mortgage of £90000

I have been paying the mortgage which she is happy to give me what is paid in equity of the house

There is nothing in writing on this

The outstanding mortgage is about £45000
The equity I would have is about £45000

House value about £250000

i would get a mortgage of £175000 over 20 years

Deposit Total £75000 ( 30%)

Equity in house £45000
cash £30000

My question is how do I prove I have the equity the the property?

Windofchange

I would imagine that you will need to be put onto the deed in some shape or form. My best guess (I'm not a property lawyer etc) would be that you need to involve a solicitor to draw up a tenants in common agreement between the two of you stating that you each hold a 50% interest (or whatever figure you want) in the property. Once this has been completed, you would then be able to apply for a mortgage in your own right. 

Annisele

In your shoes, I think I'd start by having a chat with a mortgage broker.

On the face of it, it sounds as though you're wanting to do a concessionary purchase (i.e. she's happy to sell to you for £205k even though the property is worth £250k). That's not absolutely straightforward from a mortgage point of view - some lenders are happy with concessionary purchases when the buyer/seller are child/parent, but not all of those lenders are happy with other relationships. I suspect you'll save a lot of hassle by asking a broker what they think of the plan and how they suggest you go about it.

getmore4less

Gav1310 said:

Hi

Looking to buy girlfriends house as we are splitting up

She owns the property and I have lived there since she bought it

Property cost £180000
She paid deposit of £90000
She has mortgage of £90000

I have been paying the mortgage which she is happy to give me what is paid in equity of the house

There is nothing in writing on this

The outstanding mortgage is about £45000
The equity I would have is about £45000

House value about £250000

i would get a mortgage of £175000 over 20 years

Deposit Total £75000 ( 30%)

Equity in house £45000
cash £30000

My question is how do I prove I have the equity the the property?

In effect you bought 1/2 the house for £90k with a debt you paid.

If it's worth £250k you should be due £125k less any outstanding debt.

Oh is due the other £125k.

If you pay them £30k cash you need to raise another 95k + your £45k outstanding.

New mortgage £140k


Looks like you are overpaying to buy them out.

Without any documents good chance you are going to struggle to get a fair deal.

Owleyes00

I agree with the concessionary purchase thing having done this recently (although only on paper - my partner had a beneficial interest from an inheritance and we bought it for the cost less that amount). When we spoke to a broker she said concessionary purchases were generally only allowed between immediate family members and there were only two mainstream lenders we could approach (Nationwide and Halifax).