Buying a stake in a friends house.

[lukefreeman]

before inundating Sarnie with emails, I just thought I'd cast the net in here, and see who else has done something similar.

Here is the scenario.

. Friend has paid off 40% off his house. Has a morgatge on remaining 60%
. Wants to re mortgage to BTL and take out 15%, meaning there would be a BTL mortgage on the 75%
. I want to buy in with him, and give him 12.5%. We'd be 50/50.
. We'd rent it out together as R&R sharing partners.

Here are some questions:

. Do I need to pay 3% stamp duty on 50% of the house?
. Should we start a company up, just declare income as per a usual BTL?
. How easy is it to get a mortgage for two people who don't live with each other etc?

Edited by lukefreeman on Tuesday 20th June 12:24

[Sarnie]

Who owns the other 60%?

What is happening to that 60%?

You are getting half of the property but only paying 12.5%?

[anonymous-user]

Sarnie said:

Who owns the other 60%?

What is happening to that 60%?

You are getting half of the property but only paying 12.5%?

I'm reading it as mate reduces his 40% by 15% to 25%.

OP then pays in 12.5% which the mate uses to reduce his share to 12.5%.

All sounds a bit complicated

[boyse7en]

I only understand 50% of the maths involved in this plan.

[anonymous-user]

boyse7en said:

I only understand 50% of the maths involved in this plan.

That's only half the story!

[lukefreeman]

OP edited!