Shared house ownership

Stma123

Dear Hive Mind 
advice please on if this is even possible .
I have around £200k that I could put towards a property , in the UK .
my daughter has £30k in savings and is able to have a mortgage of around £170k , boosting her choices in the property market .
would it be possible to look jointly for a property of around £400k ? , and she will pay  the mortgage .

This would be a owned by my daughter and myself  , legalities obviously fairly sorted out etc 
I live in Spain , and would only occasionally live in the house on visits back to see the family .
What  is the best way to approach , this .?

Myci85

Lenders won't lend on half a property (hard to repossess half a property) so the mortgage would have to be in both your names, with all the added complexities that may bring.

user1977

Lenders also prefer either to be dealing with either an owner-occupier or a landlord, not a combination of an owner-occupier and an "investor" of some sort. Plus things like additional stamp duty (assuming you own property elsewhere).

Stma123

so could so could I give my Daughter the £200k and she buys the property for £400k with a mortgage for £170k 

Bookworm225

Stma123 said:

so could so could I give my Daughter the £200k and she buys the property for £400k with a mortgage for £170k 

of course, subject to whatever taxes (if any) apply to your situation - which appears to be tax resident outside the UK and subject to Spanish rules?

user1977

Stma123 said:

so could so could I give my Daughter the £200k and she buys the property for £400k with a mortgage for £170k 

Yes, subject to checking that the mortgage lender is happy with the gifted deposit (but those are accepted quite commonly).

This assumes it is a no-strings-attached gift by you and you're not e.g. meaning by "occasionally live in the house" that you'll have some sort of right to do so.

FarmGirl78

Stma123 said:

so could so could I give my Daughter the £200k and she buys the property for £400k with a mortgage for £170k 

In this scenario the house would be in her name only and not yours, which might make you uneasy.

Albermarle

At some point in the process, you would have to sign a form/ gifted deposit letter. I have signed one recently. Not sure if they are all exactly the same but they must be similar. I will quote the most important part.

......the gifted deposit is unconditional, non repayable and I will not retain any equitable interest or legal right in the property, nor will I reside in the property.

On the last point I presume occasional visits would not be a problem, but only if invited by your Daughter, as the sole owner of the property.

You may wish to consider scenarios where your daughter moved a partner in and/or got married and then split up.
The partner/spouse would have rights to some/half the equity in the property.