Joint Mortgage Advice

Danjken

Hi there,

I’m in quite an unusual situation and can’t work out what to do. Your advice is much appreciated.

A long term friend and I want to buy a renovation project together. Neither of us has owned a house previously – but we’ve shared a rental property for years and have renovation experience.

We can each get a mortgage for the full asking price individually, so don’t technically need a joint mortgage.

The problem is that we’d both be investing considerable equity in the renovation itself, and plan to share any profit (or loss) resulting from the eventual sale of the property – which makes a joint mortgage almost necessary to ensure equal ownership.

I know what you’re thinking... just go for a joint mortgage for the sake of legality. However, if only one of us buys it (which is easily affordable) the other still retains the right to a First-Time-Buyer mortgage for a future property – and that 92% LTV rate and low APR would make that much easier.

Surely if we get a joint mortgage, even if it’s only based on one salary, that will count as the one and only FTB mortgage for both of us?

Kind regards,

Daniel

stepbar

Danjken wrote: »

Hi there,

I’m in quite an unusual situation and can’t work out what to do. Your advice is much appreciated.

A long term friend and I want to buy a renovation project together. Neither of us has owned a house previously – but we’ve shared a rental property for years and have renovation experience.

We can each get a mortgage for the full asking price individually, so don’t technically need a joint mortgage.

The problem is that we’d both be investing considerable equity in the renovation itself, and plan to share any profit (or loss) resulting from the eventual sale of the property – which makes a joint mortgage almost necessary to ensure equal ownership.

I know what you’re thinking... just go for a joint mortgage for the sake of legality. However, if only one of us buys it (which is easily affordable) the other still retains the right to a First-Time-Buyer mortgage for a future property – and that 92% LTV rate and low APR would make that much easier.

Surely if we get a joint mortgage, even if it’s only based on one salary, that will count as the one and only FTB mortgage for both of us?

Kind regards,

Daniel

You will both lose your FTB status is the straight answer.

5Aces

Have a chat with a solicitor and see what agreement can be drawn up. dont gamble that sd will be gone any time soon. get something done with a com oaths!