Buying with friends...

Gibbsy2000

Hey guys,

I've finally took the plunge as a first time buyer along with one of my friends to buy a house. Some people say this is a bad idea.. some say good... however i'm fairly pleased with how it's all panning out. Were putting an offer in sometime next week on a property, however i have a few questions first:

- Will banks be ok with 2 friends going in on a mortgage, most of the calculators on the banks mortgage's websites indicate "couples earnings", so does it mean you have to be joined at the hip to be accepted or can you use joint income as friends....?

- Obviously there will be the issue of if either party wishes to sell. We've already faced up to this before we even considered buying. The plan is that if one party wishes to sell, then the other party is offered first refusal on the 50% share of the house, if they do not want it or cannot afford it, the the house goes up on the market. Is their any legally binding documents as such hanging around on the net, and should a solicitor draft something like the above into a letter we can both sign?

Any other comments would be appreciated.

Regards,

Ian_W

- Will banks be ok with 2 friends going in on a mortgage, most of the calculators on the banks mortgage's websites indicate "couples earnings", so does it mean you have to be joined at the hip to be accepted or can you use joint income as friends....?

Not an expert, but I certainly would have thought so, so long as you're buying jointly with the intention of both names being on the deeds, which you clearly are. Quite a few IFA's & Mortgage brokers contribute to these threads so I'm sure one will be along shortly to confirm [or otherwise] but I'd be very surprised if 2 friends couldn't get a joint mortgage, given the diversity of people who buy property together these days.

Is their any legally binding documents as such hanging around on the net, and should a solicitor draft something like the above into a letter we can both sign?

You're going to be using a solicitor for the purchase anyway, so even if there were one available on t'internet it would probably be safer to use the solicitor to draw one up, though it will cost you a bit extra. I would think you would also be well advised to include a proviso that running costs [Council tax, Water, Utilities etc] are to be paid for equally.

Some people say this is a bad idea.. some say good...

Hmmm. Yes, both have been said a lot and in quite strong terms on this forum. If it suits you, it's affordable and you're happy [as you clearly are] with your decision to buy - then I say Good Luck to you and your mate. :T

Tharweb

I bought my first house with a mate back in 1990. There was no problem getting a mortgage and no legal documents were drawn up, (solicitor didn't advise they were necessary), I'm not suggesting this is advisable though.

It worked out well and I ended up buying out the property in 1994. We had the house valued by 3 estate agents and worked out an average price.

The only hairy moment was when my building society asked if my earnings would cover the new mortgage :eek: (I had been paying it myself for over a year! :rolleyes: ), fortunately they did, just!

This could be the only way to get on the property ladder for first time buyers these days, good luck and I hope it works out for you:beer:

DrStep

You need to ask yourself - when are you going to have your own family? 5, 10 25 years time?