What are my sons mortgage options when I own part of the house?

sandyback

Hi all, any pointers as to how my son could purchase 2/3 of a family property, myself and my two sisters currently own it.  He would want to buy out my two sisters with me leaving my third in my name.  He doesn't have a deposit ... we are aware that one possibility is a concessionary mortgage but I think that would mean me gifting my equity in the property to him ... he's 21 and never had a mortgage ... i am 52 and have a couple of years left to pay on a mortgage on another property.  Any options we may have missed?

Thanks

kingstreet

You can't mortgage part of a property. It's all or nothing.

For you to retain ownership you would have to be a party to the mortgage and hold the property tenants in common in unequal shares.

sandyback

Thank you for your reply, do you mean that I would have to take out the mortgage with my son?

kingstreet

Yes. You would apply for a joint mortgage.

gwynlas

As well as being on the mortgage you can use your third part ownership as the deposit which is presumably what makes this affordable for your son. What are his future plans as he would be tied to this property with you?

sandyback

His future plans at the moment are vague we are just looking at this as an opportunity to get him out of renting and sort of on to the ladder.

silvercar

if you a if you and your sisters have owned it for quite a while there is a good chance that it will have increased in value, any sale to your son may create a CGT liability to the sellers, particularly if anyone hasn't lived in the property as their main residential home since they acquired it.

sandyback

the house is part of an estate we became executors for in December with probate having just been granted