Shared equity type situation

[Piglet]

It's likely that I will buy (genuinely at market value) a half share of my dad's house at some point.

On the basis I have enough income for the amount of mortgage I'm looking at am I likely to find a mortgage lender to go with this?

Dad will own his half of the house outright and we will all live their (building a grampa annexe for him!)

Any thoughts/experiences on this?

(I'm not sure how I got the heart smilie! Random clicking on my part I guess!)

Edited by Piglet on Monday 29th October 11:50

[Piglet]

walm said:

So, the mortgage companies assessed both of our financial situation and would only loan up to 2.5x our combined gross salaries.
These days I believe that number is closer to 3.5x but not sure.
I don't think there is any way to avoid this.

Thanks for that Walm, that's interesting....this is my concern - Dad is 73 and has a decent pension but not enough to service or justify a mortgage and I doubt I've got enough salary to keep the mortgage co happy on the entire value of the property.

[Piglet]

Ah yes, I'd got confused about having to provide income for the whole value. My income is sufficient for the mortgage and he's got a couple of decent'ish pensions, although ideally I'd rather keep him off the mortgage so he doesn't have to worry too much about it but I guess he provides the security (of the owned 50%) so they'll want him on it.

A lower percentage might be an option but my sister is I think a little twitchy that I'm either ripping him or her off so half seems a good idea...

[Piglet]

Thanks for that Scotal, to make this worse it's non standard construction (Woolaway bungalow) so I guess I need to start digging on the mortgage point sooner rather than later if we're adding extra problems into the mix!

[Piglet]

scotal said:

Piglet said:

Thanks for that Scotal, to make this worse it's non standard construction (Woolaway bungalow) so I guess I need to start digging on the mortgage point sooner rather than later if we're adding extra problems into the mix!

Oh yeah... precast concrete...... deep joy.

[Deep Breath] If you want a hand finding a lender, drop me a pm. [Exhale]

Cool - I'll tell you about my CCJ's as well

(That's a joke, I have a beautiful credit rating )

We're probably still a little while away from doing this. Going for planning for the grampa annexe in the new year and then we'll look at financing.

Cheers