LEGAL ADVICE

[jambolass1000]

I need to pick a fellow JKB member that has legal knowledge. I cant afford a house on my own but say for instance my mum who is on her own decided to sell up and we buy a new house together, would it be possible for me to get a mortgage to put towards buying one as she wouldnt have enough to buy one outright from the sale of her own house. How would it work legally, like would a contract need to be set up stating that I owned say 25% of the house.

 

Any advice would be appreciated

[Brian Whittaker's Tache]

I suspect it would be fairly easy to draw up a contract in Scotland for that

 

I looked into this in London a few years ago and it was a fairly common simple procedure to draw up the contract for it (me and my mate were looking to buy together)

 

Shouldn't take a decent lawyer more than a few hours

[jambolass1000]

I need to pick a fellow JKB member that has legal knowledge. I cant afford a house on my own but say for instance my mum who is on her own decided to sell up and we buy a new house together, would it be possible for me to get a mortgage to put towards buying one as she wouldnt have enough to buy one outright from the sale of her own house. How would it work legally, like would a contract need to be set up stating that I owned say 25% of the house.

 

Any advice would be appreciated

 

Does anyone work in mortgages? Would it be possible to get a mortgage for such purposes.

[Meadows]

Not sure what percentage mortgage you would be looking for? It sounds like your Mum would pay a substanstial deposit (50%) in return for a 50% stake in the property?

Most lenders would be delighted with that,very easy for solicitors also.

 

Good Luck..

[tedp6873]

you could always get a buy to let

[jambolass1000]

Not sure what percentage mortgage you would be looking for? It sounds like your Mum would pay a substanstial deposit (50%) in return for a 50% stake in the property?

Most lenders would be delighted with that,very easy for solicitors also.

 

Good Luck..

 

have pmd you

[Tom Heaney]

have pmd you

 

Try contacting John Mitchell who is a member. I think his username is without spaces, ie johnmitchell

[jambolass1000]

Try contacting John Mitchell who is a member. I think his username is without spaces, ie johnmitchell

 

thanks, is he is in the legal profession?

[belly]

thanks, is he is in the legal profession?

 

He works in the mortgage buisness and may be able to get you a good deal!

But in answer to your original question I can't see a problem with what you are doing, your mum pays the deposit.

Get a joint mortgage as it will be in both names, but as for paying for it have the payments taken from your bank account, problem solved.

[coppercrutch]

What can I say to this one.

 

If you can't afford a house now then save up a decent deposit and wait a few years. You should be able to afford a place by then. Why would you want to buy a place if you can't afford it? I never understood that one....

 

In the meantime get your mum to sell up (QUICKLY) and put her equity into somewhere very safe. Then get yourself and your mum a nice rented place for a couple of years and buy when you can afford to.

 

Houses have gone from being affordable to being completely unaffordable in only a few short years.

 

Some people think it will stay that way for infinity. I personally think that is a ridiculous idea.

 

At the moment house prices in Edinburgh are about 8 times the average salary. Historically the long term average is between 3 and 4 times. Even though it has gone above and below that previously it has ALWAYS eventually returned to the norm. It will again. Why wouldn't it....

 

But hey what do I know. Good luck.

[jambolass1000]

What can I say to this one.

 

If you can't afford a house now then save up a decent deposit and wait a few years. You should be able to afford a place by then. Why would you want to buy a place if you can't afford it? I never understood that one....

 

In the meantime get your mum to sell up (QUICKLY) and put her equity into somewhere very safe. Then get yourself and your mum a nice rented place for a couple of years and buy when you can afford to.

 

Houses have gone from being affordable to being completely unaffordable in only a few short years.

 

Some people think it will stay that way for infinity. I personally think that is a ridiculous idea.

 

At the moment house prices in Edinburgh are about 8 times the average salary. Historically the long term average is between 3 and 4 times. Even though it has gone above and below that previously it has ALWAYS eventually returned to the norm. It will again. Why wouldn't it....

 

But hey what do I know. Good luck.

 

What I mean is I would not be able to get a mortgage to cover what houses cost these days especially on your own. If houses were 70K then yes I could afford that but you dont get mortgages these days for ?150K on one salary.

[coppercrutch]

What I mean is I would not be able to get a mortgage to cover what houses cost these days especially on your own. If houses were 70K then yes I could afford that but you dont get mortgages these days for ?150K on one salary.

 

Well just wait until they become affordable again. They always have, and they always will. Nothing to indicate this time will be any different. And the longer you wait, the larger deposit you will have. Double bonus.

 

BTW - What effect do you think 'not get(ting) mortgages these days for 150k' is going to have on houses that currently cost 150k....

[jambolass1000]

Well just wait until they become affordable again. They always have, and they always will. Nothing to indicate this time will be any different. And the longer you wait, the larger deposit you will have. Double bonus.

 

BTW - What effect do you think 'not get(ting) mortgages these days for 150k' is going to have on houses that currently cost 150k....

 

what i meant by that not everyone's salary including mine would be able to receive a mortgage basing it on the normal 3 x salary. So you would have to be on a really good salary (single application) to get a mortgage to say cover ?130K with a deposit of ?20K But who am I to say, I just came on to ask for some advice and appreciate your comments.

[The Old Tolbooth]

I've PM'd you Jambolass

[coppercrutch]

what i meant by that not everyone's salary including mine would be able to receive a mortgage basing it on the normal 3 x salary. So you would have to be on a really good salary (single application) to get a mortgage to say cover ?130K with a deposit of ?20K But who am I to say, I just came on to ask for some advice and appreciate your comments.

 

No probs - just trying to give you some other options. The common held theme "You must buy a house at all costs and never rent" is actually not the only option. You may be able to save up a decent deposit in the next few years. At the same time the mortgage you will need may be coming down at the same time.

 

When people tell you "renting is dead money" ask yourself what paying tens of thousands, if not hundreds of thousands, in interest to a bank is............

[belly]

No probs - just trying to give you some other options. The common held theme "You must buy a house at all costs and never rent" is actually not the only option. You may be able to save up a decent deposit in the next few years. At the same time the mortgage you will need may be coming down at the same time.

 

When people tell you "renting is dead money" ask yourself what paying tens of thousands, if not hundreds of thousands, in interest to a bank is............

 

Do you rent the house you live in??

[neobis]

I would listen to CC, he is giving good advice here.

[Chip Douglas]

Do you rent the house you live in??

 

He lives with Mum and Dad.

 

Jambolass, you can own the property in essentially any percentage share you like subject to very minor exceptions; the normal scenario of course is that a married or co-habiting couple own a half "pro-indiviso" share each.

 

There's nothing to stop your Mum owning 75% and you 25% and this will be reflected in the title to the property rather than in the contract per se.

 

Let me know if you need any further assistance, drop me a message.

[Chip Douglas]

I would listen to CC, he is giving good advice here.

 

Conversely, this is a reasonably good time for first time buyers with a sizeable deposit to put down; especially where you're not burdened with selling on a property.

[neobis]

Conversely, this is a reasonably good time for first time buyers with a sizeable deposit to put down; especially where you're not burdened with selling on a property.

 

First time buyer that is going to share with a parent? Its hardly long term.

 

Next you will be advising they take an endowment on the mortgage?

 

Why pay the inflated prices at the moment? Give it time and they will reduce .... as will the mortgage rates (it's a win/win).

[Peebo]

First time buyer that is going to share with a parent? Its hardly long term.

 

Next you will be advising they take an endowment on the mortgage?

 

Why pay the inflated prices at the moment? Give it time and they will reduce .... as will the mortgage rates (it's a win/win).

 

Depending, of course, on where they are looking to buy...

[neobis]

Depending, of course, on where they are looking to buy...

 

............... people looking to buy cheap ..... and sell high is vastly diminishing by the day.

 

Speak to people in Manchester and Leeds for example.

[Peebo]

............... that looking to buy cheap ..... sell high is vastly diminishing by the day.

 

Speak to people in Manchester and Leeds for example.

 

Will they translate the first sentence?

[neobis]

Will they translate the first sentence?

 

Its easy to be smug, I will pick you up on your next grammar/spelling mistake . Its now been amended.

[Peebo]

Its easy to be smug, I will pick you up on your next grammar/spelling mistake . Its now been amended.

 

No smugness here - I simply didn't understand what you meant, and still don't.

[Chip Douglas]

First time buyer that is going to share with a parent? Its hardly long term.

 

Next you will be advising they take an endowment on the mortgage?

 

Why pay the inflated prices at the moment? Give it time and they will reduce .... as will the mortgage rates (it's a win/win).

 

Why shouldn't it be long term?

 

Prices are not particularly inflated at the moment and sellers are edgy, there are plenty of reasonably priced properties on the market for the astute first time buyer.

 

I haven't a clue what you're talking about with regard to the mortgage product but presumably you're trying to be a smart @rse so I'll let that one go.

[neobis]

Why shouldn't it be long term?

 

Prices are not particularly inflated at the moment and sellers are edgy, there are plenty of reasonably priced properties on the market for the astute first time buyer.

 

I haven't a clue what you're talking about with regard to the mortgage product but presumably you're trying to be a smart @rse so I'll let that one go.

 

"Prices are not particularly inflated at the moment" -

 

I assume you are trying to be a smart @rse so I'll also let that one go.

 

For someone to say the above I can only assume you work in the market hence your comment.

[neobis]

No smugness here - I simply didn't understand what you meant, and still don't.

 

I'll not spoon feed it any more.

 

No need to reply.

[Peebo]

I'll not spoon feed it any more.

 

No need to reply.

 

Yeah, I guess it's maybe too ambitious asking for clarification.

[Chip Douglas]

"Prices are not particularly inflated at the moment" -

 

I assume you are trying to be a smart @rse so I'll also let that one go.

 

For someone to say the above I can only assume you work in the market hence your comment.

 

I don't work in the domestic market but I have many colleagues and friends who do. Relatively speaking, prices are "less inflated" than they have been for some time. I really can't be bothered spelling this out for you.

 

I would hazard a guess that I have a greater degree of anecdotal knowledge than you in this area, so that leaves only one smart @rse on this thread, as far as I can see.

[neobis]

I don't work in the domestic market but I have many colleagues and friends who do. Relatively speaking, prices are "less inflated" than they have been for some time. I really can't be bothered spelling this out for you.

 

I would hazard a guess that I have a greater degree of anecdotal knowledge than you in this area, so that leaves only one smart @rse on this thread, as far as I can see.

 

OK smart @rse ........

 

If I purchase another property at ?200k tomorrow can you tell me 100% it will be worth more (i.e above inflation etc) in a years time? [simple YES/NO please]

 

I would also hazard a guess you have no idea a bit like the rest of the market however you seem to come across that you know exactly how the market is going to go?

 

.P.S - ...... I am sure Edinburgh is immune

[neobis]

Yeah, I guess it's maybe too ambitious asking for clarification.

 

Quite.

 

No need for a reply.

[Chip Douglas]

OK smart @rse ........

 

If I purchase another property at ?200k tomorrow can you tell me 100% it will be worth more (i.e above inflation etc) in a years time? [simple YES/NO please]

 

I would also hazard a guess you have no idea a bit like the rest of the market however you seem to come across that you know exactly how the market is going to go?

 

.P.S - ...... I am sure Edinburgh is immune

 

No. And your point?

 

Quite why you hover about these "legal" threads on here, I don't know because I've yet to see you contribute anything of note to either a request for information or to a debate.

[neobis]

No. And your point?

 

Quite why you hover about these "legal" threads on here, I don't know because I've yet to see you contribute anything of note to either a request for information or to a debate.

 

Hover on "legal" threads? Please quote as you are again incorrect. However I will not retort in this slagging match that you seem hell bent on.

 

However thanks for your answer.

 

I will not hijack the OP's thread anymore. Apologies jambolass1000.

 

P.S - Not need to reply to me and let jambolass1000 get on with what she needs.

[Chip Douglas]

Hover on "legal" threads? Please quote as you are again incorrect. However I will not retort in this slagging match that you seem hell bent on.

 

However thanks for your answer.

 

I will not hijack the OP's thread anymore. Apologies jambolass1000.

 

P.S - Not need to reply to me and let jambolass1000 get on with what she needs.

 

I've provided a response, which is a damn sight more than you have.

 

End of.

[neobis]

I've provided a response, which is a damn sight more than you have.

 

End of.

 

You remind me of a certain person from the west ..........

P.S - Keep upping yourself your worth it

[coppercrutch]

Why shouldn't it be long term?

 

Prices are not particularly inflated at the moment and sellers are edgy, there are plenty of reasonably priced properties on the market for the astute first time buyer.

 

I haven't a clue what you're talking about with regard to the mortgage product but presumably you're trying to be a smart @rse so I'll let that one go.

 

OMG

 

I will have to agree with Neobis here. And this is actually quite pertinent for the OP. There are good times and bad times to buy. In the opinion of many many people this is quite possibly the worst time to buy in the last 10 years.

 

Long term averag house price is 3-4 times average salary. In Edinburgh it is about 8 times at the moment. There is only one way that can go, IMO.

 

This would make me sit on the sidelines for a few years and see what happens. Prices are certainly extremely unlikely to shoot up so you have very little to lose. At the same time you can save a larger deposit. Win/win situation.

 

Worst outcome - The house you want to buy is pretty much the same price in a few years. You have a larger deposit. Not much lost.

 

Best outcome - The house you want to buy is much cheaper in a few years. You have a larger deposit. You have gained enormously.

 

I would agree with Chip that if you have a large deposit and you can drive a bargain now may not be a bad time, if you are thinking long term. And by that I mean 10+ years.

 

But the OP does not sound like she is in that situation. So, IMO. buying now shared with her mum could end up being one of biggest mistakes of her life.

 

Sit back Jambolass. Save up a deposit, and see what happens. That is what the smart people are doing. Hopefully.

[By the light]

Might be able to help....

 

http://www.sharetobuy.com/

[Chip Douglas]

OMG

 

I will have to agree with Neobis here. And this is actually quite pertinent for the OP. There are good times and bad times to buy. In the opinion of many many people this is quite possibly the worst time to buy in the last 10 years.

 

Long term averag house price is 3-4 times average salary. In Edinburgh it is about 8 times at the moment. There is only one way that can go, IMO.

 

This would make me sit on the sidelines for a few years and see what happens. Prices are certainly extremely unlikely to shoot up so you have very little to lose. At the same time you can save a larger deposit. Win/win situation.

 

Worst outcome - The house you want to buy is pretty much the same price in a few years. You have a larger deposit. Not much lost.

 

Best outcome - The house you want to buy is much cheaper in a few years. You have a larger deposit. You have gained enormously.

 

I would agree with Chip that if you have a large deposit and you can drive a bargain now may not be a bad time, if you are thinking long term. And by that I mean 10+ years.

 

But the OP does not sound like she is in that situation. So, IMO. buying now shared with her mum could end up being one of biggest mistakes of her life.

 

Sit back Jambolass. Save up a deposit, and see what happens. That is what the smart people are doing. Hopefully.

 

Average house prices have not been 3-4 times an average salary for some time, at least since I acquired my first property in 2001.

 

The point I'm making is that by using market value as your yardstick, properties are being sold at their perceived market value or slightly below rather than 20-30% over, which has not been the case for the past 5 years or so. In that regard, I'm referring to inflation. Of course, market values themselves are probably artificially inflated.

 

Beyond all the financial side of things, I think we're forgetting a primary factor in this; some of us actually want to own our own homes for reasons beyond financial gain.

 

Personally I'd rather pitch up in a homeless hostel than doss with the parents, but each to their own!

[S.N.T.H.]

you could always get a buy to let

 

Not with Abbey you can't !

[coppercrutch]

Average house prices have not been 3-4 times an average salary for some time, at least since I acquired my first property in 2001.

 

The point I'm making is that by using market value as your yardstick, properties are being sold at their perceived market value or slightly below rather than 20-30% over, which has not been the case for the past 5 years or so. In that regard, I'm referring to inflation. Of course, market values themselves are probably artificially inflated.

 

Beyond all the financial side of things, I think we're forgetting a primary factor in this; some of us actually want to own our own homes for reasons beyond financial gain.

 

Personally I'd rather pitch up in a homeless hostel than doss with the parents, but each to their own!

 

Yes because that is when the bubble started...

 

You know, ushering in period of stupid lending and unusually low interest rates due to the US desperation not to have a recession following 9/11.

 

That period has now ended. The opposite will happen for at least the next 3-4 years. That is as close to guaranteed as you can get.

 

As for you second point I totally agree. But if you want to own your own house then why would you buy when they are at their most expensive EVER in relation to average salaries ?

 

You will only really own your house when the mortgage is paid off. So by waiting a few years and being smart you can end up owning your house a lot quicker than if you stump up a ridiculous amount of money (+Interest) at the moment.

 

Most people seem unable to grasp the following very simple concept:

 

Debt owner does not equal HOME owner.

 

Very simple really.

 

Anyway Jambolass just thought you may like the other side of the story to think about. Then you can make your own mind up having heard more than just the usual brainwashing. I am no professional when it comes to these things. However I have a good dose of common sense. It usually does me pretty well.

 

Good luck.

[Super T]

Yes because that is when the bubble started...

 

You know, ushering in period of stupid lending and unusually low interest rates due to the US desperation not to have a recession following 9/11.

 

That period has now ended. The opposite will happen for at least the next 3-4 years. That is as close to guaranteed as you can get.

 

As for you second point I totally agree. But if you want to own your own house then why would you buy when they are at their most expensive EVER in relation to average salaries ?

 

You will only really own your house when the mortgage is paid off. So by waiting a few years and being smart you can end up owning your house a lot quicker than if you stump up a ridiculous amount of money (+Interest) at the moment.

 

Most people seem unable to grasp the following very simple concept:

 

Debt owner does not equal HOME owner.

 

Very simple really.

 

Anyway Jambolass just thought you may like the other side of the story to think about. Then you can make your own mind up having heard more than just the usual brainwashing. I am no professional when it comes to these things. However I have a good dose of common sense. It usually does me pretty well.

 

Good luck.

 

I don't know why you think the bubble started after 9/11. It had been rolling for a good few years before that.

 

So you can guarantee me that in 3 to 4 years time my house will be worth less than what it is now? That will definately not be the case. I think your confusing valuation with what people were paying. Those are 2 completely different things.

 

I think you are to scared to go out into the market yourself and as such you have made yourself believe that by holding on for another 3 years you'll be in a better position. I disagree.

Why waste 3 years of money on rent and not get anything back for it whereas you could potentially could by dipping your toe in the market.

You will not make any money over 12 months like has been seen over the last few years, that much is clear, but if you persevere for a couple more years then you still will, providing you make the correct choice for the correct price at the outset.

[coppercrutch]

I don't know why you think the bubble started after 9/11. It had been rolling for a good few years before that.

 

So you can guarantee me that in 3 to 4 years time my house will be worth less than what it is now? That will definately not be the case. I think your confusing valuation with what people were paying. Those are 2 completely different things.

 

I think you are to scared to go out into the market yourself and as such you have made yourself believe that by holding on for another 3 years you'll be in a better position. I disagree.

Why waste 3 years of money on rent and not get anything back for it whereas you could potentially could by dipping your toe in the market.

You will not make any money over 12 months like has been seen over the last few years, that much is clear, but if you persevere for a couple more years then you still will, providing you make the correct choice for the correct price at the outset.

 

What I said:

 

Worst outcome - The house you want to buy is pretty much the same price in a few years

 

I am very sure(95%) that will be the best/worse* case scenario in a few years time.

 

Renting - There we have it again. The brainwashing. Renting is dead money. Fine. So is paying interest to a bank. It is not a difficult concept to understand. Yet the majority of this countries population can't get their head around it.

 

At the moment renting is far more sensible than buying.

 

A one bed flat will cost you roughly ?500 per month to rent. The same flat to buy, if you have a 10% deposit, will cost you about ?800. Pretty big difference but most Estate agents/'experts' wont point that out to you...

 

According to the land register of Scotland Edinburgh average sale price has dropped from 248k to 213k in the last 9 months.

 

According to the ESPC Edinburgh average sale price has dropped from 228k to 210k in the last 9 months.

 

So your house is already losing value. You just haven't been told about it yet. Why would they be keeping quiet about this....

 

There are plenty of facts and figures on the estate agent thread. Get stuck in there, look at both sides of the argument, and then have a think about it.

 

PS. I am not 'scared' of dipping my toe. I could put down a 30% deposit tomorrow if I wanted. I could also probably pay off the rest in less than 10 years depending on how things pan out. I would simply prefer to buy outright in 4 years without a mortgage. That would be the smart thing to do.

 

* Depending on your situation.

[Super T]

Again, I think you are confusing sale price with valuation.

These are 2 very different things.

 

There are very few properties that would have gone down in valuation. However it is common knowledge that the sale price of a property can no longer command the premiums that they have been.

[coppercrutch]

Again, I think you are confusing sale price with valuation.These are 2 very different things.

 

There are very few properties that would have gone down in valuation. However it is common knowledge that the sale price of a property can no longer command the premiums that they have been.

 

Nope I totally understand that one, trust me....

 

It is the people who are trying to sell their house and won't derop the price who don't understand this basic fact !!

 

What is the point of a 'valuation' if no-one is going to pay it ?

 

IMO, that makes valuations close to pointless.

 

They are simply a 'guestimation', nothing more and nothing less.