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    • Monty1978
    • By Monty1978 7th Jan 18, 4:15 PM
    • 8Posts
    • 0Thanks
    Borrowing more than mortgage value?
    • #1
    • 7th Jan 18, 4:15 PM
    Borrowing more than mortgage value? 7th Jan 18 at 4:15 PM
    Hi guys,

    So basically my dad owns half his house and the other half is housing association. We get on very well so the Mrs and I have been chatting to him about buying the other half and living there.

    What I wondered is 2 things..

    1 - Would his half ownership, being fully paid off, count as deposit.
    2 - Would I be able to borrow the value of the other half plus enough to convert the attic and pay off some existing finance and loans?

    Based on my income the bank will lend me roughly 190k which is much more than is needed to get the other half of the mortgage and pay loans and home improvement but not sure if it works like that?

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    • kingstreet
    • By kingstreet 7th Jan 18, 4:27 PM
    • 33,575 Posts
    • 18,212 Thanks
    • #2
    • 7th Jan 18, 4:27 PM
    • #2
    • 7th Jan 18, 4:27 PM
    The idea of shared ownership only works between the individual and a registered social landlord. You can't own 50% with your father owning 50%.

    To staircase upto 100% you will need a mortgage on the share being purchased in the names of all the owners, including your father and the property will then be 100% jointly owned.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Monty1978
    • By Monty1978 7th Jan 18, 5:11 PM
    • 8 Posts
    • 0 Thanks
    • #3
    • 7th Jan 18, 5:11 PM
    • #3
    • 7th Jan 18, 5:11 PM
    Thanks. Yeah that's what the bank said.
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