Thoughts on my situation
Discussion
The OH and I are in quite a nice position at the moment, we got hitched last October and are looking to sort out a house. At the moment we both live at mine which I own and have about 50% equity in it at the moment and slowly ploughing my way through the rest of it.
As for the wife, she has a 40% share in a house with her brother and his lady. They've said they would like to move out and that leaves me the option with buying the other 60%.
What I would like to do is put mine on the market for rent, and then buy out the other 60%. Is this possible with the OH being part of the group that owns the house already, or do we have to sell the entire house to buy it?
Also, the mortgage they have is no on the standard rate with the Nationwide, so what I'd like to do is that the place of the brother in law on the mortgage and carry on paying at the rate, and give him the money for his share in the house some other way. Taking advantage of the rate they have at the moment. Is something like this possible / legal?
Or should we just look at selling up everything we have and getting the best place we can whilst we still have 2 incomes? As little ones are on the horizon...
As for the wife, she has a 40% share in a house with her brother and his lady. They've said they would like to move out and that leaves me the option with buying the other 60%.
What I would like to do is put mine on the market for rent, and then buy out the other 60%. Is this possible with the OH being part of the group that owns the house already, or do we have to sell the entire house to buy it?
Also, the mortgage they have is no on the standard rate with the Nationwide, so what I'd like to do is that the place of the brother in law on the mortgage and carry on paying at the rate, and give him the money for his share in the house some other way. Taking advantage of the rate they have at the moment. Is something like this possible / legal?
Or should we just look at selling up everything we have and getting the best place we can whilst we still have 2 incomes? As little ones are on the horizon...
I'm not sure whether you can pay him for his share of the house without doing it "properly" legally - would you be liable for stamp duty on his share and so by trying to do it some other way, you'd be seen as wriggling out of the stamp duty?
Also remember if you rent your place out you'll need to tell your mortgage company (if you're doing it all above board) and if they're anything like mine they'll put an extra 1% on the mortgage rate, some might not do anything, and some might make you change to a buy-to-let mortgage.
But for a lay person's opinion (and it really just is that) you don't sound all that keen on the brother's house, so why not look at buying what you actually want while the markets are low?
Also remember if you rent your place out you'll need to tell your mortgage company (if you're doing it all above board) and if they're anything like mine they'll put an extra 1% on the mortgage rate, some might not do anything, and some might make you change to a buy-to-let mortgage.
But for a lay person's opinion (and it really just is that) you don't sound all that keen on the brother's house, so why not look at buying what you actually want while the markets are low?
euroboy said:
I tried to do the same with my sisters house (buy her ex's share). They were with Northern Rock and it was refused due to my working situation - but the notion of being able to switch the mortgage to a new debtor was certainly available (and I think for about only 30quid).
Good luck!
Love the look of your new place by the way! Good luck!
dreamer75 said:
I'm not sure whether you can pay him for his share of the house without doing it "properly" legally - would you be liable for stamp duty on his share and so by trying to do it some other way, you'd be seen as wriggling out of the stamp duty?
Also remember if you rent your place out you'll need to tell your mortgage company (if you're doing it all above board) and if they're anything like mine they'll put an extra 1% on the mortgage rate, some might not do anything, and some might make you change to a buy-to-let mortgage.
But for a lay person's opinion (and it really just is that) you don't sound all that keen on the brother's house, so why not look at buying what you actually want while the markets are low?
Thanks for the input, I do actually like her brothers house, I much prefer the area, the only issue is the garden isn't that big. It's only round the corner from her parents, which will help with childcare etc etc.Also remember if you rent your place out you'll need to tell your mortgage company (if you're doing it all above board) and if they're anything like mine they'll put an extra 1% on the mortgage rate, some might not do anything, and some might make you change to a buy-to-let mortgage.
But for a lay person's opinion (and it really just is that) you don't sound all that keen on the brother's house, so why not look at buying what you actually want while the markets are low?
Also, I've spoken before to my mortgage company about renting my house out and they are happy to do that with no change to my T&C's
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