Options

borich_planner · 17 Jun 2012 at 17:42

I live in Gravesend and rent a flat and due to my parents looking to retire and avoid selling their property (indowment mortgage) they added me to the deeds and I re-mortgaged it five years ago and pay it all. The deal is that in another 5 years they would sell it and give me 1/2 the value towards my own place.

My Grandma left her house to me (mortgage free) and the deal on the will is my mum can live there until she dies then it comes to me.

Now I'm wondering would it possible to raise capital from my grans house (100k or so and use that to get a deposit on a property up in Gravesend and then get the remaining through a second mortgage (50-60k) with my partner.

In term of values its as follows

Parents house 77k mortgage property is worth 280-300k
Grans House 210k-230k

In terms of income I earn 40k and my partner is on 17k but raising to 24k.

The plan would be my parents could live in their own until they die, keep my grandma's house rented out and also have my own property in Gravesend.

Soundood · 17 Jun 2012 at 18:12

and your question is what exactly? advice on what option to take?

simple option: live at Grans house till the market picks up

medium option: talk to mum, discuss with her the option of staying where she is, and selling grans house to pay for new place of your own.

hard option: see your bank manager, he should have no worried about releasing 100k against your grans, but of course you would be bundled with the debt, on top of the debt you have from your mums,

but hey you know this ehh?

borich_planner · 17 Jun 2012 at 18:17

Sorry the issue is that both houses are in Cornwall and I live and work in North Kent. Basically I want to try and keep both houses and get my own place in Kent. My parents would like to live in my Grans house or next 20 years or so.

Soundood · 17 Jun 2012 at 18:24

borich_planner said:
Sorry the issue is that both houses are in Cornwall and I live and work in North Kent. Basically I want to try and keep both houses and get my own place in Kent. My parents would like to live in my Grans house or next 20 years or so.

then option 3 is for you matey, release the money from them and invest in property for you and your partner, you guys are on 60K+ between you, you should have a fun time with a small mortgage

borich_planner · 17 Jun 2012 at 20:41

soundood said:
then option 3 is for you matey, release the money from them and invest in property for you and your partner, you guys are on 60K+ between you, you should have a fun time with a small mortgage

that the plan.

edit: would it be equity release to get the money from my Grandmas house? a quick Google shows that for people over 55

The Halk · 18 Jun 2012 at 00:37

borich_planner said:
that the plan.

edit: would it be equity release to get the money from my Grandmas house? a quick Google shows that for people over 55

If you own a house and take a loan against it then it's equity release, however there's two types. One is repaid on death and that's not what you want. You just want a normal mortgage loan, sometimes called an equity release, sometimes called an unencumbered mortgage, or sometimes a homeowner loan.

borich_planner · 18 Jun 2012 at 07:20

The Halk said:
If you own a house and take a loan against it then it's equity release, however there's two types. One is repaid on death and that's not what you want. You just want a normal mortgage loan, sometimes called an equity release, sometimes called an unencumbered mortgage, or sometimes a homeowner loan.

If I got a mortgage of 100k against my Grandmas and my existing 77k mortgage on my parents surely the bank would not give me another mortgage against a property in Kent?

Munky1080 · 18 Jun 2012 at 10:47

I have nothing to add with the exception that I too live in Gravesend... pretty poor weather this morning

borich_planner · 18 Jun 2012 at 11:32

Munky1080 said:
I have nothing to add with the exception that I too live in Gravesend... pretty poor weather this morning

Sunny and warm in Cornwall!

gjrc · 18 Jun 2012 at 12:10

as long as you can demonstrate you can repay them all then you should be fine...

the bank will have to know you are going to be letting the property out.

borich_planner · 18 Jun 2012 at 13:00

I think id struggle with 100k mortgage my grans, 77k on my parents and a 70k mortgage on own a property in Gravesend..

uvarvu · 18 Jun 2012 at 13:02

Moses said:
Woo, two more Cornish houses locals will have to rent.

My sentiments exactly.

borich_planner · 18 Jun 2012 at 13:50

uvarvu said:
My sentiments exactly.

What's the problem?

The Halk · 18 Jun 2012 at 17:47

borich_planner said:
If I got a mortgage of 100k against my Grandmas and my existing 77k mortgage on my parents surely the bank would not give me another mortgage against a property in Kent?

Only if it's affordable, if it's not then you're out of luck. If you're planning on renting any property where they take a security they will be considerably tougher on what they'll lend.