Combing households - mortgage to buy share of property
Discussion
I own my house outright, 4 bed detached dormer bungalow. Mortgage was paid off about 15 years ago. Worth about £415k on Zoopla.
I'm 65 in a couple of weeks, self-employed, work from home. I have a couple of company pensions which pay the basic bills.
I have a lodger, who plans on staying here for life - long-term friend. She has a good job, but is very bad with budgeting. By the end of the month, she's got nothing left. No chance of ever getting a mortgage of her own. She currently pays enough rent to cover half the household bills, plus a bit on top.
My sister (45), wants to move back to the area with her female partner and 10 year old daughter. They both work (around £55k combined income), currently in housing association property, no cash for a deposit.
We all get along, and want one property (with enough private space) for all of us would be ideal.
To up-size to a suitable property would cost at least £200k inc. fees.
Since we all like the location of my current house, it seems to make sense to stay here, and build a rear extension to give us a bigger kitchen/diner, sunroom and an en-suite bedroom, plus a few other alterations. The shell of the extension will cost around £60k. We would handle most of the other work between us, so it'll probably cost around £100k to get what we want, and take maybe 2 years to finish everything.
Because it won't be a quick job, my sister will stay in her current house and job for a while, and relocate once the major work is completed. She's a care home manager, her partner is a plasterer, so finding new jobs won't be a problem.
The plan is for her to get a mortgage of £100k on my house, in return for a share of the property. The money would be put aside to pay for the works.
She has been advised that it would have to be a joint mortgage (with me), and that as soon as she gets it she will lose her "right" to her current housing association house, and have to move out.
Are both of these things true?
Thoughts on the best way to proceed?
I'm 65 in a couple of weeks, self-employed, work from home. I have a couple of company pensions which pay the basic bills.
I have a lodger, who plans on staying here for life - long-term friend. She has a good job, but is very bad with budgeting. By the end of the month, she's got nothing left. No chance of ever getting a mortgage of her own. She currently pays enough rent to cover half the household bills, plus a bit on top.
My sister (45), wants to move back to the area with her female partner and 10 year old daughter. They both work (around £55k combined income), currently in housing association property, no cash for a deposit.
We all get along, and want one property (with enough private space) for all of us would be ideal.
To up-size to a suitable property would cost at least £200k inc. fees.
Since we all like the location of my current house, it seems to make sense to stay here, and build a rear extension to give us a bigger kitchen/diner, sunroom and an en-suite bedroom, plus a few other alterations. The shell of the extension will cost around £60k. We would handle most of the other work between us, so it'll probably cost around £100k to get what we want, and take maybe 2 years to finish everything.
Because it won't be a quick job, my sister will stay in her current house and job for a while, and relocate once the major work is completed. She's a care home manager, her partner is a plasterer, so finding new jobs won't be a problem.
The plan is for her to get a mortgage of £100k on my house, in return for a share of the property. The money would be put aside to pay for the works.
She has been advised that it would have to be a joint mortgage (with me), and that as soon as she gets it she will lose her "right" to her current housing association house, and have to move out.
Are both of these things true?
Thoughts on the best way to proceed?
Sarnie said:
There are so, so many potential issues with this I don't really know where to start......it would be so much easier for you to sell up and buy somewhere jointly......
£30k plus in fees, and a suitable property will cost £600k plus. Much cheaper if we just extend.My house is just around the corner from where she grew up.
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