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Buying into partners house
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steve866
Posts: 542 Forumite
I have recently rented out my own house and moved in with my partner.
She owns the house with a friend. Everyone would like me to buy the friend out.
The friend put down a £50k deposit and my partner £0. They have a joint mortgage with NatWest, which is fixed for 4 years and has a large early settlement fee.
She owns the house with a friend. Everyone would like me to buy the friend out.
The friend put down a £50k deposit and my partner £0. They have a joint mortgage with NatWest, which is fixed for 4 years and has a large early settlement fee.
How straightforward would it be for me to take over the mortgage?
Would I need to come up with a deposit of £50k (+ any increase in value and fees) to make this work, or would NatWest consider additional borrowing at this time?
Thanks
Thanks
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Comments
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The mortgage company are not going to offer you a 100% mortgage with no deposit.0
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I understand but I’m wondering if the deposit needs to remain exactly the same in these situationsAlbermarle said:The mortgage company are not going to offer you a 100% mortgage with no deposit.0 -
It would be a completely new product ie a joint mortgage with your partner.
Essentially the house would be sold to you as a couple and the friend paid back her deposit and share of the equity.ERC would need to be paid
As a couple you would need a deposit and to meet the affordability criteria for the remaining mortgage so the deposit need not be £50k but would be a percentage of the agreed selling price.
It would be prudent to have a deed of trust drawn up by a solicitor if you are entering into a financial partnership.1 -
And get wills.
Don't forget the friend is entitled to their share of the current value of the house.I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe, Old Style Money Saving and Pensions boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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So it is unlikely I could do this without triggering the early repayment fees?0
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and pay legal fees and anything else required. I think there would be stamp duty but don't quote me.
Could you wait until the current mortgage runs it's course?I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe, Old Style Money Saving and Pensions boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board: https://lemonfool.co.uk/financecalculators/soa.php
Check your state pension on: Check your State Pension forecast - GOV.UK
"Never retract, never explain, never apologise; get things done and let them howl.” Nellie McClung
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"She owns the house with a friend. Everyone would like me to buy the friend out."
Everyone.... so is that your parents, your friends, your work???
You have only just moved in, you have only just rented your house out. So surely you need a bit of time (6 months or a year) to ensure that arrangement works. Ie your tenants pay their rent on time every month.
How far into the 4 year fixed mortgage is your partner?
If partner and friend went into a 4 year fixed term then they knew at that point they were committing to a 4 year period together. I'd be wary of getting into a commitment too soon, frying pan and fire spring to mind!
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Wouldn't it be more straightforward to go the other way, sell the shared house and move into yours?steve866 said:I have recently rented out my own house and moved in with my partner.
She owns the house with a friend. Everyone would like me to buy the friend out.
The friend put down a £50k deposit and my partner £0. They have a joint mortgage with NatWest, which is fixed for 4 years and has a large early settlement fee.How straightforward would it be for me to take over the mortgage?Would I need to come up with a deposit of £50k (+ any increase in value and fees) to make this work, or would NatWest consider additional borrowing at this time?
Thanks0
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