Buying House with elderly parent

Former Member

Hi,

My wife and I are considering selling our house and moving into a new house with my elderly mother. She will sell her house and move in together with us. I wanted to ask some general questions of anyone 'in the know' about the mortgage process this will/could involve.

My mothers house is worth approx 350K and she has a Halifax lifetime mortgage of 29K on her property. She will "Port" the mortgage. We have a house worth approx 140K and a mortgage of 95K on it.

The house we are looking to buy will be around 250-275K. We hoped to "Port" our mortgage but it turns out the RBS idea of "porting" is more or less taking out a new mortgage. So we'll be seeing an adviser about a new mortgage. In advance of seeing him I hope someone can give me an idea on the following:

1. Can all 3 of us be on the deeds ok?
2. Is it viable to have what is effectively 2 separate mortgages on a single property?
3. If my mothers house sells first and she buys the new house alone, would we then subsequently buy in to the new house or is it best to have 3 names on the deeds from day 1? If necessary she could pay off her mortgage but that leaves her with 30K less in her pocket.

Sorry for the long questions. Any help/advice would be gratefully appreciated.

Thanks!

pleasy

Former Member

I'd suggest you run through everything with a financial adviser, as there are usually restrictions on how many mortgages or secured loans you can take out at any one time. These are not legal limits- you can have a million secured loans against your house if you can find a lender to give you the money- but most mortgage lenders want to have "first charge" on the property. Charges are listed in order so the lender listed first gets first dibs on the money if you default, the second charge having second dibs, etc etc.

If your gran and you both have secured loans, this could be a problem.

Again, you can legally have as many owners listed on a property as you want, but lenders tend to insist that everyone listed as an owner is also listed on the mortgage.

It is possible legally to buy your way on to the house later, but would usually require the consent of the lender (and will require a second load of conveyancing, so you probably don't want to do that).

Former Member

Cheers for that Arctic Roll. It's all looking like it might be wise to have the smaller mortgage paid off, simply to avoid all this hassle and being at the mercy of lenders.

I'm seeing an adviser next Tuesday but was hoping to get some insight earlier. I think you have given me some of that. Thanks!

JustV

Hey @damian7 - this thread is over three years old so I'm closing it now.