Using existing jointly owned property to obtain new mortgage

blandsausage · 31 December 2024 at 1:18PM

Hi All, I have tried to do some research and just wanted to some advice/thoughts on potential options.

The situation currently is:
-Living with younger sibling and my partner. The property was gifted to my sibling and I, which we jointly own mortgage free.
-Partner and I are a bit older and are looking at options so that we can live together as a couple on our own.
-Brother is younger so would be quite happy to stay in this property for foreseeable future and without taking on a mortgage. He is quite happy with the "status quo", which my partner and I are less happy with, which is starting to show!

From my research I can see following options:
1. Sell property.
2. Brother moves out, we pay him some amount as "rent" which will help him find somewhere to rent. Or the other way around (unlikely he would be happy paying me rent)
3. I get a mortgage with my partner to buy out his half. Or other way around (also unlikely for him to get a mortgage large enough on his own)
4. Another option is for partner and I to get a completely separate mortgage and move out

Is there anything obvious I have missed?

For the last option (4), potential problems are that we live in London and not very high earners (approx. 80k combined) so the new property for partner and I would be quite a bit smaller or further out. Second home stamp duty would also be quite a lot!

I was wondering whether there was any way I could use my half of the property as part of a deposit for a mortgage on a new property? I've tried to look but couldn't really find anything so I assume this is not possible, or less common? I can imagine a bank would not be able to "access" my half of the property if I were to default hence not possible?

Thanks for the help in advance!