Buying a house with your son

Posted on 20 August 2012 by Frank


Can you see any problems if my wife and I buy a house with our son? We would buy 66% of the house in cash and our son would buy the other 34% with a mortgage.

Frank

Legally this is certainly possible and your solicitor will be able to arrange the appropriate split when registering the title.  As far as the mortgage goes I don't think this is going to be as easy.

Any mortgage is going to have to be in the same names as the ownership and so you and your wife will as liable for the payments as your son.  The mortgage term is going to be restricted by your ages and this could make the repayments prohibitively expensive, most lenders want the mortgage term to finish before your 75th birthday.

It may be possible for your son to buy the property in his sole name and thus avoid the problems with the mortgage term.  Your interest would need to be protected by registering a Deed of Trust and you should take independent legal advice before exploring this avenue.  If you are going to be living in the property you will be asked to sign a consent to mortgage waiving any rights of occupation in favour of the mortgage lender.

I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to help you find the right mortgage for your situation.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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