Buying a house with my pension and the daughters income

shakeapaw

Before we go and chat with a mortgage adviser next week, I would just like to see if anybody can offer any advice.
We are mortgage free, however the daughter is still with us due to her low income.
We would like to all move into a bigger house as she is now expecting. Sadly her partner of many years has walked out on her.
Our idea is to sell our two bed house and jointly buy a 3/4 bed house. All the money from the house sale would go towards the new one, with the daughter adding on with her mortgage. Sounds simple enough. Is it?
The spanner in the works is if we are still unable to find something suitable. Then I may be asked to add to the pot as joint applicant . This is the tricky part. I am 61 and will be retiring next September, would anyone give me a mortgage knowing this? I am fortunate that I have a large pension pot that can pay me the same wage that I currently earn. so income isn't the issue.

ACG

It would likely need to be a joint application. Otherwise the deposit would be viewed as a gift but with strings attached (ie you live there). 

It could be a joint application without using your income but that would affect affordability. What you could do is use your income, but only to help arrange a mortgage that your daughter is comfortable she can pay on her own. 

Things to consider though:
- When the baby comes - what will her income look like in the short term and longer term? Maternity pay/returning part time etc. 
- Your still relatively young so hopefully not something you need to think about now, but what happens if you need care down the line? How does your daughter stay in the home but you get your money out to pay for it? 
- Will this set up affect any benefits your daughter may be eligible for? 
- What happens if you and your daughter decide that living together with a baby is not working? Im sure seeing your grandchild everyday will be quite appealing, I know my in laws would move in if they could (they definitely cant!). But the sleepless nights etc etc - They are hard going in your 20s/30s, Im 40 and dont think I could do it again. 

Sorry, not trying to put a downer on anything. I just think its worth thinking about these things beforehand. 

swingaloo

Sounds like a lovely plan and Im sure you have thought of these things but I have to agree with the above poster, how will you feel if in a couple of years your daughter meets someone else and he moves in. Perhaps someone you don't like very much.
Another thing that would concern me, is your daughter never going to marry? If she did the house would become a marital  asset if there was a future divorce which would mean buying someone out or having to sell your home.

gwynlas

There is no rush your daughter and baby can share for quite some time.

Unfortunately you are quite young to be looking at a 3 generation household with the strains this puts on daily living, meaning you are likely to live until child reaches adulthood.

Who knows how your daughters life might change before then with perhaps a new partner and more children.

in practical terms providing you can fund it through retirement income you can consider a 20 year mortgage.

Perhaps your daughter should consider setting up her own home