Can I purchase a property jointly with my son?

Posted on 18 October 2007

Hi l want to assist my son to purchase a house, could we buy a property jointly and combine our salaries to obtain a mortgage?

Yes absolutely; be aware though that your name will be on the deeds later, and this could cause stamp duty issues later if he wants to buy you out.

You can also just be a guarantor, although this is becoming less popular as most lenders ask that your income can cover all of your mortgage plus all of his within a traditional multiple, and that often isn't practical.

If you want to help him but don't want to go on the property deeds, try Bank of Ireland or Bristol and West, both of whom offer a "First Start" mortgage which allows you to use your spare income after your mortgage to add to his, but still allowing the property to go in his name alone.

Alternatively, you could raise a lump sum from your own property, perhaps a s a further advance on your current mortgage, and he can carry a smaller mortgage on his own. The solicitor can arrange (it has to be after the purchase) for you to own a share in his property (a second charge) and that way you could arguably have the right to a share of the equity increase in the future.

Katie.

Category: First-time buyer, Guaranteeing & buying with child

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