Family who’d have them.
Discussion
Long story.
My wife and 2 brothers own her late parents house. Ex council worth about £110k max. It’s let out at present to a good tenant.
Her youngest brother wants to buy it but can’t for 2 years (he’s just bought his council house) so he’s come up with the idea of mortgaging it for £75k, on an interest free mortgage, splitting the £75k 3 ways and paying the mortgage using the money from the tenant. Then buying the house from the other joint owners and moving in.
This sounds over complicated and my wife would rather they just sold it now and split the money (Probate is just going through) and the fact the brother can’t buy the house is just tough luck. We could be amenable to leaving the tenant in for 2 years but the other brother needs the cash sum as well.
Is it even possible to do this? Of course to complicate matters my wife is retired so the mortgage would only be between the 2 brothers. If they can even find anyone to give them a mortgage.
As I said it sounds a complicated way to operate when the sensible way would just be to sell it.
My wife and 2 brothers own her late parents house. Ex council worth about £110k max. It’s let out at present to a good tenant.
Her youngest brother wants to buy it but can’t for 2 years (he’s just bought his council house) so he’s come up with the idea of mortgaging it for £75k, on an interest free mortgage, splitting the £75k 3 ways and paying the mortgage using the money from the tenant. Then buying the house from the other joint owners and moving in.
This sounds over complicated and my wife would rather they just sold it now and split the money (Probate is just going through) and the fact the brother can’t buy the house is just tough luck. We could be amenable to leaving the tenant in for 2 years but the other brother needs the cash sum as well.
Is it even possible to do this? Of course to complicate matters my wife is retired so the mortgage would only be between the 2 brothers. If they can even find anyone to give them a mortgage.
As I said it sounds a complicated way to operate when the sensible way would just be to sell it.
If you’re open to waiting then suggest that - current income split 3 ways - revalue the house in 2 years on a pre-agreed basis eg 3 agents, price to sell in 8 weeks - take mid value minus x percent.
If other brother needs the cash now then that drives the decision and you just sell IMHO
If other brother needs the cash now then that drives the decision and you just sell IMHO
What is the term of the tenancy agreement?
Does the brother who wants to buy it intend to live in it or does he just fancy being a landlord for the extra income?
As the other brother wants his share now, and the other brother can’t buy the house for 2 years, then the easiest option is probably to give the tenants notice and sell the property to divide the proceeds 3 ways.
Other options potentially start getting extremely messy even if it is family.
Does the brother who wants to buy it intend to live in it or does he just fancy being a landlord for the extra income?
As the other brother wants his share now, and the other brother can’t buy the house for 2 years, then the easiest option is probably to give the tenants notice and sell the property to divide the proceeds 3 ways.
Other options potentially start getting extremely messy even if it is family.
anonymous said:
[redacted]
Simple but he’s already got a mortgage to buy his council house. He’s not going to be able to raise enough to buy the other 2 out.Recap.
Eldest brother needs money so he’d not be bothered by either remortgaging or selling.
My wife thinks it’d all end in tears and would prefer to sell.
Youngest brother wants the house but can’t raise enough funds for 2 years. He’s got a ‘best mate’ who’s a mortgage advisor and I think is filling his head with all this stuff. Plus his wife is putting the pressure on to buy the house as it’s in a better area than where they are.
They’ve both been on at my wife who’s fended them both off with ‘show me the figures’ but she’s going to have to be blunt I think. We’re both retired and the lump sum would be handy and to be honest she didn’t have a good relationship with her parents and just wants it done with.
Drawweight said:
anonymous said:
[redacted]
Simple but he’s already got a mortgage to buy his council house. He’s not going to be able to raise enough to buy the other 2 out.Recap.
Eldest brother needs money so he’d not be bothered by either remortgaging or selling.
My wife thinks it’d all end in tears and would prefer to sell.
Youngest brother wants the house but can’t raise enough funds for 2 years. He’s got a ‘best mate’ who’s a mortgage advisor and I think is filling his head with all this stuff. Plus his wife is putting the pressure on to buy the house as it’s in a better area than where they are.
They’ve both been on at my wife who’s fended them both off with ‘show me the figures’ but she’s going to have to be blunt I think. We’re both retired and the lump sum would be handy and to be honest she didn’t have a good relationship with her parents and just wants it done with.
Drawweight said:
Simple but he’s already got a mortgage to buy his council house. He’s not going to be able to raise enough to buy the other 2 out.
He’s got a ‘best mate’ who’s a mortgage advisor and I think is filling his head with all this stuff.
It's perfectly possible that he could get a 66% LTV BTL mortgage if the numbers work. The fact he has a mortgage on his primary house is not necessarily an issue. Assuming the friend is actually qualified it should be easy to establish if he's got a chance of being approved.He’s got a ‘best mate’ who’s a mortgage advisor and I think is filling his head with all this stuff.
If her brother is looking to re-mortgage and pull out the value of his discount from the council he will quickly find out they wont let him do this. As the council he has purchased from are the first charge on the property for extracting the value of the discount on a sliding scale should the house need to be sold, mortgage company are the second charge.
Basically if he is looking to do what I think he is, he can't!
Basically if he is looking to do what I think he is, he can't!
Drawweight said:
Simple but he’s already got a mortgage to buy his council house. He’s not going to be able to raise enough to buy the other 2 out.
.
He owns 33% of the property. He does not need to raise any money, he just needs to get a 66% BTL mortgage, to buy the other 2 out, No?.
Is it not that simple?
The only way to do this is if the brother who wants it gets a BTL mortgage for 66% of the value of the house and buys it off the OP's wife and other brother.
What if the brother isn't in a position to buy the property in 2 years time after all?
What if the tenant moves out?
This is a business deal. Don't do business with family.
What if the brother isn't in a position to buy the property in 2 years time after all?
What if the tenant moves out?
This is a business deal. Don't do business with family.
geeks said:
If her brother is looking to re-mortgage and pull out the value of his discount from the council he will quickly find out they wont let him do this. As the council he has purchased from are the first charge on the property for extracting the value of the discount on a sliding scale should the house need to be sold, mortgage company are the second charge.
Basically if he is looking to do what I think he is, he can't!
Plus, is he looking to sell up if/when he moves into the jointly owned property or rent it out? I think if he is looking to sell he wont be able to do this either as I believe he wil have to wait a minimum of 5 years due to council restrictionsBasically if he is looking to do what I think he is, he can't!
Muzzer79 said:
The only way to do this is if the brother who wants it gets a BTL mortgage for 66% of the value of the house and buys it off the OP's wife and other brother.
What if the brother isn't in a position to buy the property in 2 years time after all?
What if the tenant moves out?
This is a business deal. Don't do business with family.
This , same situation with a close family friend, it’s all good till money is involved, I wouldn’t get into anything interim, clean break now with all money settled. What if the brother isn't in a position to buy the property in 2 years time after all?
What if the tenant moves out?
This is a business deal. Don't do business with family.
I’m heading into the same situation with my sister, she only sees our mother as a source of windfall (she sat in our house and told us so) and it makes me sick.
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