Buying a House with Family and Friends
It can be difficult in the current market to get a first time buyers mortgage. Â A sensible option is to consider joint ownership with a friend or member of the family.Â
Consider the worst case scenarioÂ – Buying a home should be a positive experience, and one of the perks of buying with friends or family should be a high level of trust, but that shouldn’t be to the detriment of legalities. Consult lawyers about a co-ownership contract and agree in advance what will happen if one owner’s circumstances change.
Get the right mortgageÂ – There are mortgages that exist specifically for this type of purchase, so shop around for the best deal. By combining in this way it is possible to attain a mortgage of higher value, due to the increase in income afforded by applying with a joint wage.
Keep the paperwork in orderÂ – Documents associated with the purchase should remain accessible to both parties. Any documents relating to the property or mortgage should also be in the names of each of the co-buyers.
Count the penniesÂ – Often a joint bank account is the best way to ensure that mortgage/utility payments are met promptly. If all parties have access to the account it also ensures that any financial transactions are handled transparently and are not the sole responsibility of one owner.
Know who owns the sofaÂ – To avoid disputes, drawing up an inventory of non-shared items at the start of the residential period can ensure that there is no confusion about which items belong to whom. This should also help if one owner decides to move out.