Borrowing more than mortgage value?

Monty1978 · 7 January 2018 at 5:15PM

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?

Ta

kingstreet · 7 January 2018 at 5:27PM

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.

Monty1978 · 7 January 2018 at 6:11PM

Thanks. Yeah that's what the bank said.

Borrowing more than mortgage value?

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