Buying half a house
Discussion
Hi all,
Hoping someone can shed some light on this.
Bit of background. Stepdad owns a house with his brother - owned outright, and been rented for years. Currently tenanted.
Brother wants out so stepdad has asked my brother and I whether we wanted to buy 50% of it to save him selling it.
Not huge returns but sums are ok - but how do you buy half a house?
What about mortgage set up? Does the 50% already owned count as deposit (even though it’s not mine/my brothers) - assuming we’d have to include stepdad on the mortgage application for this to be the case but does this impact the amount of Stamp Duty payable?
Hoping someone can shed some light on this.
Bit of background. Stepdad owns a house with his brother - owned outright, and been rented for years. Currently tenanted.
Brother wants out so stepdad has asked my brother and I whether we wanted to buy 50% of it to save him selling it.
Not huge returns but sums are ok - but how do you buy half a house?
What about mortgage set up? Does the 50% already owned count as deposit (even though it’s not mine/my brothers) - assuming we’d have to include stepdad on the mortgage application for this to be the case but does this impact the amount of Stamp Duty payable?
AndyD360 said:
Hi all,
Hoping someone can shed some light on this.
Bit of background. Stepdad owns a house with his brother - owned outright, and been rented for years. Currently tenanted.
Brother wants out so stepdad has asked my brother and I whether we wanted to buy 50% of it to save him selling it.
Not huge returns but sums are ok - but how do you buy half a house?
What about mortgage set up? Does the 50% already owned count as deposit (even though it’s not mine/my brothers) - assuming we’d have to include stepdad on the mortgage application for this to be the case but does this impact the amount of Stamp Duty payable?
The stepdad would need to be on the mortgage too.........which may limit your maximum term available depending on how old he is.....Hoping someone can shed some light on this.
Bit of background. Stepdad owns a house with his brother - owned outright, and been rented for years. Currently tenanted.
Brother wants out so stepdad has asked my brother and I whether we wanted to buy 50% of it to save him selling it.
Not huge returns but sums are ok - but how do you buy half a house?
What about mortgage set up? Does the 50% already owned count as deposit (even though it’s not mine/my brothers) - assuming we’d have to include stepdad on the mortgage application for this to be the case but does this impact the amount of Stamp Duty payable?
You’ll pay stamp duty on the amount of the house you’re buying - so 50%. Your step father’s share isn’t changing hands so no duty to pay on that. If you own another house you may have the 3% second home surcharge to pay too.
Probably be easier to get a second mortgage on your existing home rather than trying to get a buy to let mortgage with your 70 year old step father.
Although as said above you should really speak to a solicitor and get some proper advice
Probably be easier to get a second mortgage on your existing home rather than trying to get a buy to let mortgage with your 70 year old step father.
Although as said above you should really speak to a solicitor and get some proper advice
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