Mortgage for a Log Cabin

We had a great timber chalet we were going to buy (but the owner was not able to get the tenant to leave - he's still there and this was back in 2006!) and had a mortgage all arranged with the Ecology Building Society - they were great (but it did cost us about £500 to set up )

Im not sure why you are calling it a log cabin if its costing that much - is it for some sort of planning reason? How difficult would it be to sell a wooden house - very Id have thought for that sort of money.

Im amazed at the cost - surely if the company is making that sort of profit they should be the one to find you a mortgage.

Staciep88 wrote: »

FIL doesnt want any money for the land and wants to keep it in his name, maybe we should offer him £5k (for example) to buy it and then there would be no issues.

Staciep88 wrote: »

How should we approach FIL about purchasing the land. What wouuld you offer? He has 9 acres altogether, would like to 1 acre, so that we have make a big garden out of it and a nice drive way.

If he wants to keep it in his name, the best way to achieve this would be for him to split 1 acre (or whatever you agree on) onto a seperate title in joint names between you, OH FiL, MiL.

The ownership could be set up as 'tenants in common' which would allow you FiL to set the ownership of the land as he wants e.g 99% to him and Mil and 1% to you and OH. (there may be rules against such a onesided split but a solicitor would be able to advise the minimum share he needs to give you - if there is one).

You then (incomes etc permitting) arrange a mortgage in joint names between you, OH FiL, MiL to build and pay for the log home. As long as the mortgage is paid, no-one cares whether you all contribute towards the costs or just you and OH.

I would suggest something along the above lines to him and offer to pay the legal costs for the title split, planning permission etc.

You will have to get some legal and more detailed Financial Advice (not just mortgage and conveyancing) as OH's parents will have to carefully consider how their will etc is written as well as any potential Inheritence Tax Issues - not forgetting some planning for what happens on the sale of the house, a split, a falling out, illness etc etc

In your position I would (out of courtesy) ask you in laws permission to apply for planning. all this heart ache could be moot.

Then, ask if they will gift a plot size for the pre planning permission value or up to £20k (thats the amount you can match, right?)for what ever size plot...they might feel a smaller plot comes into that, and in you position I'd accept that if you feel its a realistic value. Then let you and your OH get on with it bring equal value to the relationship. Your loss of course is that in gaining the land and goig joint with OH you will have to work with him on his debt issue, I'd say it works out pretty equal morally at least.

The issue of wills is confusing issues. Without wills the inherit property from each other and assets up to the value of (I think) £80k before their children come in to the equation. (does your OH have siblings). In either case when one of them die in all likely hood 1/4 of the investment above is not too likely in the near furture to superceed that amount. BUT it does mean in a case of separation you might get less back than you put in should the property be valued at less than £120,000 (plus the costs for valuation and the legal fees).

What is your OHs preferred option?

(caveat, I make no pretence at being an expert in anything and my facts may well be outdated or incorrect)

ETA; I originally thought the amount OP had was £30k now I think its £20k