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LondonlawyerJ, Advocate
Category: Law
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Experience:  Solicitor with over 15 years experience.
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Is it possible to buy part of a property owned in full by a

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Is it possible to buy part of a property owned in full by a relative? OUr grandma wants to sell us her house, but we cannot afford its market value - so we have talked about giving her 2/3 of the price and she remains owner of the remaining this legal?
Hello, I am a solicitor with 20 years experience. I will try to answer your question for you.
This is an arrangement that can be legal but it is not completely straight forward. YO will need make sure that any arrangement makes sense in terms of type of joint ownership, tax etc. You will need a solicitor to draw this up for you and will have to instruct them in the orthodox face to face way. The fee is unlikely to be more than £500.00.
Customer: replied 2 years ago.
ok, great - are there any main points you think we need to be aware of or things to avoid? Would a bank be happy to give us a mortgage under this arrangement? Our current idea is that we would give our grandma £200 - 250k and she would retain ownership of the rest. Property was recently valued at 330k - though we do believe this is an over estitmate as the property needs a lot of work.
I don't see why you wouldn't be able to get a mortgage for a family joint ownership although it is a bit non-standard. Things to be aware of include the various tax and probate issues which you need to discus with a lawyer face to face.
Customer: replied 2 years ago.
Ok - that's great. Thanks very much for your help - last question . Do you know if the bank would still require a deposit in a joint-ownership situation?
That will be up for negotiation but it is very likely that they would.
LondonlawyerJ, Advocate
Category: Law
Satisfied Customers: 823
Experience: Solicitor with over 15 years experience.
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Customer: replied 2 years ago.
HIJust to add some information.In fact this is not an unusual situation at all.Your problem will be that most first line lenders have age limits on mortgages so unless your grandmother is still in her 50's you will not be able to obtain a mortgage if her name remains on the deeds.You should discuss the options with a mortgage broker - there are ways of resolving the matter - a separate cash deposit will NOT be necessaryClare
Customer: replied 2 years ago.
Hi Clare, thanks for your additional info - very helpful indeed. Our grandmother is in her 90s. What would be the solution to the deeds issue? We can't afford to buy the entire house so does thjis mean this might end up being a "no-go"?
Not at all - it merely means that you need to be aware of the pitfalls.
The starting point is being honest with your chosen mortgage advisor and getting full detailed advise.
Your mortgage lender is going to want your grandmothers contribution called a "full gifted deposit" with her confirming she will not retain an interest in it.
This can be dealt with by instructing a DIFFERENT solicitor to prepare a Declaration of Trust after the purchase is completed confirming that you hold the property on Trust for yourselves and your grandmother and setting out the appropriate shares.
However some first line lenders would also be concerned about her continuing to live with you so if that is planned you will be restricted in your lender option!
Customer: replied 2 years ago.
Thanks so much - your replies have been so great. No, our Grandmother now lives in a nursing home - and needs to pay her bills there, so our share in the house would go towards paying for her care.
Then you are not likely to face any major problems!
Customer: replied 2 years ago.
Many thanks indeed!
My pleasure - I hope all goes well