KIDZ!! ( bless em )

[Toneisok]

I am thinking about helping both my kids to get on the property ladder by buying 50% of their first home with them as they are not earning enough to pay a full mortgage. The idea is that we buy a house, and they only get a mortage for half the value and I fund the rest. Then if a partner wants to move in they would have to pay rent.
I'm sure there are plenty of pifalls waiting but I can't think of them.

Also any cheap mortgage deals?
Thanx in advance

[bednobs]

i would go to a mortgage broker if i were you

[Pippa68]

''Then if a partner wants to move in they would have to pay rent.''

Oh how romantic ;o)

[Toneisok]

Unfortunately if a partner just contributes to bills etc and then they split up I think that they have some claim on the house

[Pippa68]

And by paying rent & bills they wouldn't?

A very dodgy situation to be in!

[bednobs]

i think you are right .. if you charge rent, they are a tennant, and would have no more claim on the house than if a friend moved in and you charged them rent, surely?

[Toneisok]

Any suggestions as to how to protect against wayword exes pippa, I find my children do seem to be able to pick em!!

[Pippa68]

In theory that is true, however it could be dodgy as they are also a romantic partner. If they are in a serious relationship (as living together usually is) surely it would be better for them to take over the mortgage?

It would probaby save grief later on..

[Pippa68]

LOL Toneisok, I'm afraid not..only advice I can give is don't let someone live with you unless you trust them implicitly!

Having been ripped off by an ex myself I do sympathise, and as I have said in theory the plan for a partner to pay rent works in theory...and of course anyome worth their salt will be willing to go along with that plan.

However things could go along swimmingly for a long time, they take over the mortgage or one of your children decides to sell their half of the property and buy another place with their partner. The unscrupuloous partner would then end up wit a chunk of equity beyond the amount they paid as a joint tenant in mortgage terms are equally entitled to proceeds.

It may well be delaying the inevitable?

[Toneisok]

Even with their combined incomes they would struggle to pay a mortgage that first time buyers in my area need.

[bednobs]

heres a plan ... you say kids (plural). Instead of helping two? of them .. pick your favourite and just help 1! then the whole mortgage is yours and no one will nick the equity

[Toneisok]

lol bednobs
Or i could swap my two for two that acually got on with each other and they could live together!

[redcrx]

speak to a solicitor! Im sure that it can be arranged so that you will own a certain percentage of the property and can claim that back before anyone else can take and equity.
Any future partners your children may have will still have some claim to equity from when they start to contirbute to the home but at least your part would be safe. Just explain to your kids what could happen if relationships didnt work out.

[sunflower71]

what a nice parent you are.

like people have said make sure you speak to lawyers etc.
especially when the kids start thinking about partners moving in.

[legend1751]

Will you adopt me please?

[debbie1601]

Be a gaurantor on the mortgage, Bristol & West do fantastic deals where parents income is taken into consideration. To be a gaurantor you will have to seek independant legal advice but any mortgage broker will be able to source the actual mortgage.