Help with buying a second house
Discussion
Looking for some advice chaps
An opportunity has arisen for my girlfriend and I to buy a house that’s in dire need of renovating. The house in question belonged to her great Uncle who sadly passed away in April, and due to him having no children it has been left in the will to his nephew (her Dad).
I already have a house of my own which I’ve owned since before I met her, mortgaged at about 60% of it’s value. She has no property and has never owned a property.
With the wage my girlfriend is on she is never going to get the mortgage needed for this house on her own, despite our intentions of going 50/50 on deposit, renovation costs etc. So we’ve been looking at me either going on as a guarantor or trying to do it as a joint application.
My biggest concern is stamp duty - obviously on her own she wouldn’t pay it but what happens with me as a guarantor or even as a joint applicant? If we have to pay it at second home rates it’s nigh on £10k! A brief Google would suggest what we need is a “joint application sole proprietor” mortgage but I’m guessing these aren’t all that common/easy to secure?
Another point to contend is that her Dad wants to give her a discount on the house, to the tune of £35k. I feel it would be better (if at all possible) to buy it at full price and mortgaged accordingly, then after completion he gift her that money back. It would certainly go a long way towards the renovation costs which we think are going to be £60-£70k. What are the legalities of this, as it’s something I’ve never had to deal with before.
I do have a telephone appt with my mortgage/financial advisor late next week but I didn’t want to go into it totally blind, hence asking here first for some ideas/suggestions and/or quell my concerns as to whether this is even going to be possible.
An opportunity has arisen for my girlfriend and I to buy a house that’s in dire need of renovating. The house in question belonged to her great Uncle who sadly passed away in April, and due to him having no children it has been left in the will to his nephew (her Dad).
I already have a house of my own which I’ve owned since before I met her, mortgaged at about 60% of it’s value. She has no property and has never owned a property.
With the wage my girlfriend is on she is never going to get the mortgage needed for this house on her own, despite our intentions of going 50/50 on deposit, renovation costs etc. So we’ve been looking at me either going on as a guarantor or trying to do it as a joint application.
My biggest concern is stamp duty - obviously on her own she wouldn’t pay it but what happens with me as a guarantor or even as a joint applicant? If we have to pay it at second home rates it’s nigh on £10k! A brief Google would suggest what we need is a “joint application sole proprietor” mortgage but I’m guessing these aren’t all that common/easy to secure?
Another point to contend is that her Dad wants to give her a discount on the house, to the tune of £35k. I feel it would be better (if at all possible) to buy it at full price and mortgaged accordingly, then after completion he gift her that money back. It would certainly go a long way towards the renovation costs which we think are going to be £60-£70k. What are the legalities of this, as it’s something I’ve never had to deal with before.
I do have a telephone appt with my mortgage/financial advisor late next week but I didn’t want to go into it totally blind, hence asking here first for some ideas/suggestions and/or quell my concerns as to whether this is even going to be possible.
Turkish91 said:
Looking for some advice chaps
An opportunity has arisen for my girlfriend and I to buy a house that’s in dire need of renovating. The house in question belonged to her great Uncle who sadly passed away in April, and due to him having no children it has been left in the will to his nephew (her Dad).
I already have a house of my own which I’ve owned since before I met her, mortgaged at about 60% of it’s value. She has no property and has never owned a property.
With the wage my girlfriend is on she is never going to get the mortgage needed for this house on her own, despite our intentions of going 50/50 on deposit, renovation costs etc. So we’ve been looking at me either going on as a guarantor or trying to do it as a joint application.
My biggest concern is stamp duty - obviously on her own she wouldn’t pay it but what happens with me as a guarantor or even as a joint applicant? If we have to pay it at second home rates it’s nigh on £10k! A brief Google would suggest what we need is a “joint application sole proprietor” mortgage but I’m guessing these aren’t all that common/easy to secure?
Another point to contend is that her Dad wants to give her a discount on the house, to the tune of £35k. I feel it would be better (if at all possible) to buy it at full price and mortgaged accordingly, then after completion he gift her that money back. It would certainly go a long way towards the renovation costs which we think are going to be £60-£70k. What are the legalities of this, as it’s something I’ve never had to deal with before.
I do have a telephone appt with my mortgage/financial advisor late next week but I didn’t want to go into it totally blind, hence asking here first for some ideas/suggestions and/or quell my concerns as to whether this is even going to be possible.
You should contact Sarnie on here as he’s highly recommended for everything mortgage wise.An opportunity has arisen for my girlfriend and I to buy a house that’s in dire need of renovating. The house in question belonged to her great Uncle who sadly passed away in April, and due to him having no children it has been left in the will to his nephew (her Dad).
I already have a house of my own which I’ve owned since before I met her, mortgaged at about 60% of it’s value. She has no property and has never owned a property.
With the wage my girlfriend is on she is never going to get the mortgage needed for this house on her own, despite our intentions of going 50/50 on deposit, renovation costs etc. So we’ve been looking at me either going on as a guarantor or trying to do it as a joint application.
My biggest concern is stamp duty - obviously on her own she wouldn’t pay it but what happens with me as a guarantor or even as a joint applicant? If we have to pay it at second home rates it’s nigh on £10k! A brief Google would suggest what we need is a “joint application sole proprietor” mortgage but I’m guessing these aren’t all that common/easy to secure?
Another point to contend is that her Dad wants to give her a discount on the house, to the tune of £35k. I feel it would be better (if at all possible) to buy it at full price and mortgaged accordingly, then after completion he gift her that money back. It would certainly go a long way towards the renovation costs which we think are going to be £60-£70k. What are the legalities of this, as it’s something I’ve never had to deal with before.
I do have a telephone appt with my mortgage/financial advisor late next week but I didn’t want to go into it totally blind, hence asking here first for some ideas/suggestions and/or quell my concerns as to whether this is even going to be possible.
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