Would this work?

LazyDog11

Hi.

My elderly neighbour(79) has asked me to help her with her living situation and I can't decide whether it is workable or not.

She owns her home outright, but also has very little money, only £8k pa pension. I rent next door and have a full time income. We get on very well and she looks after my dig while I'm at work.

She looked into equity release to free up some money but her home isn't worth enough and a relatively small loan would swallow up the all of the equity after a short time.

She has asked me if I would consider helping her free up some money by her selling her home, keeping half the money, putting the other half down as a deposit on a new home, I would live there too and take out a mortgage for the remaining funds required, paying the repayments myself.

My thinking is I doubt I'd get a lender to give me money for a place that somebody else has a large stake in, and I'm not sure if anyone would allow my neighbour on a mortgage at her age.

Is any of this possible? If so, how?

(The legal aspects of all of this would be fully taken care of by solicitors so I'm only asking here about lending and mortgages, not advice about how to share the ownership of the home)

ACG

You would probably need to do a joint mortgage. 
She would be liable for the payments if you did not pay - so thats a risk to the neighbour. 
Her age could be ignored if her income is not being used. 

Does she have any kids/nephews/nieces/siblings etc? You might want to include them in this discussion as you could find in a few years they start popping out of the woodwork. 

LazyDog11

ACG said:

You would probably need to do a joint mortgage. 
She would be liable for the payments if you did not pay - so thats a risk to the neighbour. 
Her age could be ignored if her income is not being used.

Thank you.

So could a high street bank advise on this or would it be best to see a broker?

ElwoodBlues

LazyDog11 said:

ACG said:

You would probably need to do a joint mortgage. 
She would be liable for the payments if you did not pay - so thats a risk to the neighbour. 
Her age could be ignored if her income is not being used.

Thank you.

So could a high street bank advise on this or would it be best to see a broker?

Definitely better to approach a broker about this. 

ACG

One or 2 high street lenders might consider it, but you might need a little building society. 
Definitely one for a broker as it is far from straight forward, you still might end up on the high street via the broker.