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Shared mortgage with relative HELP!
buersout
Posts: 1 Newbie
I am buying 50% of a property from an elderley relative. The house has no current mortgag. And I want to buy half with a view to buying the other half when she dies.
Been to see about mortgages for the 50% - and the bank said its fine. But I dont understand what they have told me - can anyone help?
The house has a Market Value of 140,000. I am buying half for 70,000. The bank said that I have to apply for a mortgage for 75,000 in order to get a mortgage for 70,000 - as I am only buying half a property. This would be in any case with a 94% mortgage.
Can anyone shed any light?
Been to see about mortgages for the 50% - and the bank said its fine. But I dont understand what they have told me - can anyone help?
The house has a Market Value of 140,000. I am buying half for 70,000. The bank said that I have to apply for a mortgage for 75,000 in order to get a mortgage for 70,000 - as I am only buying half a property. This would be in any case with a 94% mortgage.
Can anyone shed any light?
0
Comments
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I think they are saying they will lend a maximum 95% of YOUR share as they do not ledn 100%.
I dont mean to unsettle you but I would'nt be surprised if the Bank employee has misunderstood you. ALL Owner occupiers have to be named on the mortgage deed so this means your elderly relative will need to be assessed to establish whether the loan is RESPONSIBLE. Someone in thier head office may end up declining as they are putting an elderly persons home at risk. The reason for this is the Bank cannot repossess halve a house - there is no such thing.0
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