Not so joint mortgage with a mate
Discussion
Bit of advise needed folks.
I have seen a house I like. Up for 190k but will probably offer below 175k to get below the stamp duty threshold.
To get a good mortgage rate we need to get a 75pc mortgage.
First question is in making an offer where do I go from here. Do I simply ring the estate agent spout some rubbish about affordability etc and tell them what I wish to offer? Or is there a more scientific method?
Secondly I am joint buying with a good friend. He earns more than me but has less deposit. I can afford the 25pc deposit on my "half" he cannot so my dad will loan me the rest.
Question is has anyone had any experience with joint mortgages when people are putting in far mor than the other. From my point of view he will be living in a decent house for less because he had no deposit. Im thinking of owning 2/3 to his 1/3 and taking more when we sell. WHats your views?
And thirdly anyone got any experience with rules etc. ie what to do if someone wants to move, someone loses there job and so on?
Any advise much appreciated
I have seen a house I like. Up for 190k but will probably offer below 175k to get below the stamp duty threshold.
To get a good mortgage rate we need to get a 75pc mortgage.
First question is in making an offer where do I go from here. Do I simply ring the estate agent spout some rubbish about affordability etc and tell them what I wish to offer? Or is there a more scientific method?
Secondly I am joint buying with a good friend. He earns more than me but has less deposit. I can afford the 25pc deposit on my "half" he cannot so my dad will loan me the rest.
Question is has anyone had any experience with joint mortgages when people are putting in far mor than the other. From my point of view he will be living in a decent house for less because he had no deposit. Im thinking of owning 2/3 to his 1/3 and taking more when we sell. WHats your views?
And thirdly anyone got any experience with rules etc. ie what to do if someone wants to move, someone loses there job and so on?
Any advise much appreciated
Do you mean your dad will loan him the rest? You say you can afford it and he can't? Or is your dad lending it to you and you are then lending it to him? If so, how will he repay you, and when, given that he will also have a mortgage to secure.
For the estate agent it is simply commercial, you say I cannot afford to go higher than this, and I haven't got the money to the pay the stamp either if it was higher because I need the cash for the deposit on the mortgage.
I think you will need to sort out figures with your man there to determine who owns what share. It could be a 50/50 split BUT when it comes to selling the house he pays you out of his 50% the amount of the deposit he didn't have.
For the estate agent it is simply commercial, you say I cannot afford to go higher than this, and I haven't got the money to the pay the stamp either if it was higher because I need the cash for the deposit on the mortgage.
I think you will need to sort out figures with your man there to determine who owns what share. It could be a 50/50 split BUT when it comes to selling the house he pays you out of his 50% the amount of the deposit he didn't have.
Jasandjules said:
Do you mean your dad will loan him the rest? You say you can afford it and he can't? Or is your dad lending it to you and you are then lending it to him? If so, how will he repay you, and when, given that he will also have a mortgage to secure.
For the estate agent it is simply commercial, you say I cannot afford to go higher than this, and I haven't got the money to the pay the stamp either if it was higher because I need the cash for the deposit on the mortgage.
I think you will need to sort out figures with your man there to determine who owns what share. It could be a 50/50 split BUT when it comes to selling the house he pays you out of his 50% the amount of the deposit he didn't have.
ultimately we will hold 50:50...on paper.For the estate agent it is simply commercial, you say I cannot afford to go higher than this, and I haven't got the money to the pay the stamp either if it was higher because I need the cash for the deposit on the mortgage.
I think you will need to sort out figures with your man there to determine who owns what share. It could be a 50/50 split BUT when it comes to selling the house he pays you out of his 50% the amount of the deposit he didn't have.
however in practice i will own 1/2, my mate 1/3 and my dad 1/6.
my dad will put in enough money to cover his half so my dads contribution and my mates equal mine. The remaining 12-13k or so my mate will pay rent on it which will be the mortgage payment. So me and my mate pay the same.
When we come to sell my dad takes his money back and 1/6 of any profit that is made.
anonymous said:
[redacted]
it is the only way we can do it to make it work.we are planning on 5yrs then will be in a position to do this going our own ways. I could live in a house half the price but dont want to. I want some of lives comforts and space.
Can be awkward but has been known to work
I am no legal eagle, but i would say have it on paper how it really is.
How long is the mortgage (DOH), i have known people who have rented together, and pissed each other off, having their girlfriend basically living there, what if your girlfriend, his girlfriend gets pregnant and has a baby?
Would you be happy to live in a house with a baby in?
From my experiences i would say NEVER lend a friend money..
How long is the mortgage (DOH), i have known people who have rented together, and pissed each other off, having their girlfriend basically living there, what if your girlfriend, his girlfriend gets pregnant and has a baby?
Would you be happy to live in a house with a baby in?
From my experiences i would say NEVER lend a friend money..
Edited by Livid on Sunday 22 February 11:34
Racingdude009 said:
Make sure you tie up the contract good and proper.
Better still set up a property management holding company preferably Ltd to buy the property.
Some people I know did this for a block of flats.
I would think that this is highly unadvisable for a stand alone house in which you are going to live.Better still set up a property management holding company preferably Ltd to buy the property.
Some people I know did this for a block of flats.
There are legal reasons regarding leaseholds and flat management that makes limited companies the norm for those sort of set ups. You hardly ever see such a set up for the purchase of the freehold of your own home. You could run into all sorts of Capital Gains Tax and Income Tax problems if you went down this route - unless you were very, very careful.
matt21 said:
anonymous said:
[redacted]
it is the only way we can do it to make it work.we are planning on 5yrs then will be in a position to do this going our own ways. I could live in a house half the price but dont want to. I want some of lives comforts and space.
Can be awkward but has been known to work
Road Pest said:
matt21 said:
anonymous said:
[redacted]
it is the only way we can do it to make it work.we are planning on 5yrs then will be in a position to do this going our own ways. I could live in a house half the price but dont want to. I want some of lives comforts and space.
Can be awkward but has been known to work
i think road pest is talking about negative equity where you pay 25k deposit on a 175k house leaving 150k on the mortgage. Over 12 months you pay of 10k = 140k oweing. If you come to sell it and it is only worth 100k you owe the bank 40k. and that is before you even get your money back. what happens then??
The Moose said:
i think road pest is talking about negative equity where you pay 25k deposit on a 175k house leaving 150k on the mortgage. Over 12 months you pay of 10k = 140k oweing. If you come to sell it and it is only worth 100k you owe the bank 40k. and that is before you even get your money back. what happens then??
the same as everyone else who buys a house, in the s
t!I hope that wont happy, and would plan to stay in the property as long as possible if it does.
matt21 said:
Road Pest said:
Have you got an IFA or broker in place to advise you on all the potential pitfalls longterm?
no, should i?Edited by Road Pest on Sunday 22 February 11:53
I would never, ever ,ever consider a joint mortgage with a mate. You just cannot know what your situation will be in 6-18 months let alone several years.
Anything could happen that will mean you want/need to get out of it; having a joint mortgage leaves you tied down indefinitely or in a very awkward situation.
I would consider either a smaller, cheaper house or try and save up for a while longer. Or get yourself a decent woman with a good job (assuming you're not a ghey)....which is fine too!
Good luck if you do it though
Anything could happen that will mean you want/need to get out of it; having a joint mortgage leaves you tied down indefinitely or in a very awkward situation.
I would consider either a smaller, cheaper house or try and save up for a while longer. Or get yourself a decent woman with a good job (assuming you're not a ghey)
....which is fine too!Good luck if you do it though
Edited by dave_s13 on Sunday 22 February 12:02
My concern would be not only with the financial arrangements, but the problems of sharing a house with somebody unless you are also going to share the bed with them.
There are many reasons why people share properties, but few good reasons. There are all sorts of problems that crop up, one of the most common is, as mentioned earlier, when one of you has what amounts to a live in sex partner. That can be a very bad thing. Even if the pair of you are really good friends, the third person will be trying to get rid of the other person (they can't help it, basic human psychology) and when someone is forced to choose between their best friend and their bonking partner, many people will make the wrong choice.
Then there are a whole host of other problems, like who uses the ohone the most, who cleans the kitchen etc etc
There are many reasons why people share properties, but few good reasons. There are all sorts of problems that crop up, one of the most common is, as mentioned earlier, when one of you has what amounts to a live in sex partner. That can be a very bad thing. Even if the pair of you are really good friends, the third person will be trying to get rid of the other person (they can't help it, basic human psychology) and when someone is forced to choose between their best friend and their bonking partner, many people will make the wrong choice.
Then there are a whole host of other problems, like who uses the ohone the most, who cleans the kitchen etc etc
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