Which mortgage product for buying house with parent but single mortgage?

Skeptical_John

Hi,

I'm looking to purchase a house with a parent. The parent and I will be joint owners (50/50) of the house. Their half is going to be in cash. Mine is going to be half cash half mortgage. I don't want the parent to be on the mortgage.

I'm trying to do some research on the viability of this, and what types of mortgages are available but I seem to be going down rabbit holes that I'm not sure are relevant.

Could anyone advise if this a feasible option that is not going to be super complicated?
One thing I've been reading is a HSBC case.

ACG

I think HSBC were the only lender to allow it and they stopped. 

grumbler

Even if you parent gifts you their money and you buy it for yourself, a  bank will want to have some formal document preventing your parent claiming their share in the house.

Skeptical_John

ACG said:

I think HSBC were the only lender to allow it and they stopped. 

Oh really? Hmm that might scupper things then

Skeptical_John

grumbler said:

Even if you parent gifts you their money and you buy it for yourself, a  bank will want to have some formal document preventing your parent claiming their share in the house.

So the only viable way would be for said parent to gift the money and claim no ownership of the house?

ACG

If the parent intends on living in the property that could be another issue as it is not a true gift. It is a gift with strings attached. 

Have you thought about using a broker? 

grumbler

Skeptical_John said:

grumbler said:

Even if you parent gifts you their money and you buy it for yourself, a  bank will want to have some formal document preventing your parent claiming their share in the house.

So the only viable way would be for said parent to gift the money and claim no ownership of the house?

Yes, I think so.

ACG said:

If the parent intends on living in the property that could be another issue as it is not a true gift. It is a gift with strings attached. 

I was in a similar situation recently - buying a house together with my wife. Only she was taking a small mortgage (about 25% of the value) as I had only savings and no income that I could prove. The bank (Nationwide?) insisted on the following

• she is  the sole owner
• I sign some document forfeiting any owneship despide gifting her the money and living in the house.

The purchase fell through for some other reason.

ACG

grumbler said:

Skeptical_John said:

grumbler said:

Even if you parent gifts you their money and you buy it for yourself, a  bank will want to have some formal document preventing your parent claiming their share in the house.

So the only viable way would be for said parent to gift the money and claim no ownership of the house?

Yes, I think so.

ACG said:

If the parent intends on living in the property that could be another issue as it is not a true gift. It is a gift with strings attached. 

I was in a similar situation recently - buying a house together with my wife. Only she was taking a small mortgage (about 25% of the value) as I had only savings and no income that I could prove. The bank (Nationwide?) insisted on the following

• she is  the sole owner
• I sign some document forfeiting any owneship despide gifting her the money and living in the house.

The purchase fell through for some other reason.

Interesting. I would never have had Nationwide being ok with that. 
This is why I like this site though, I learn through it too.