Buying a house with my Mother

Cas86

Hi All,

We were renting for 5 years and paying €950 a month in rent, back in March we decided to move back with our parents until we have a deposit saved up to buy our own home. We were told by a broker, we will not be mortgage approved as a couple as my fiancée is self employed and needs to be making returns for at least two years! That put an end to that plan, however I was told if I had a deposit of €10,000 savings myself and I was gifted with another €10,000 I could get a mortgage of €120,000, which in the current market won't get me much more than a one bed apartment! Plus if we want to go with that it has to be before December as we're due to get married and I won't be approved at all when we marry! Ideally, we don't want a huge mortgage at all, I would like to borrow maybe €190,000 at most, I'm on a decent wage and could afford the repayments easily on this size mortgage, on my own, not including the wage my partner pays himself!

We were lucky not to buy in the boom, despite back in 2007 being approved as a couple (he as an apprentice, and me in my first year of full time employment in an entry level position of the civil service) for a mortgage of €298,000!!! We'll go back to renting for a while after we marry but of course with the prices as they are, we can't afford to pay €1200 a month and do any saving!

My mother has offered that she buy the house with me and in a few years my partner will take over the mortgage, does anyone know if you can do this? My mam has paid her mortgage off, is 53 years old and has great credit rating! We would obviously be paying the mortgage but she has offered to "buy" with me. Would this be an option? Any advice greatly appreciated on this! Thanks

The_Morrigan

Cas86 you need to speak to a solr and a broker about this - this is a seriously complicated situation.

Mrs OBumble

Yes, it's an option. But get proper legal advice, and draw up a contract saying what will happen in various scenarios (eg you split up, get preggers, get sick and can't work, your mother needs to sell out before you're ready, etc).

Oh - and your mother needs professional tax advice as well.

Cas86

We would definitely go down all legal routes, it's important to me that my mother doesn't lose out in any way, financially or otherwise! It's just an option we're looking at! My dad or sisters might feel differently and my partner is worried if anything happened to me, the home we would be paying for together would not be his own! This is obviously were contracts and solicitors would get involved! My mother offered as she feels there are no other options, I feel that the government may bring in more affordable housing schemes or maybe rent to buy schemes because of the scrutiny by the media on the current housing market and I'm willing to hold out for a year or two! It seems my partner and I are stuck between a rock and a hard place in regards to our situation.

The_Morrigan

Cas86 wrote: »

We would definitely go down all legal routes, it's important to me that my mother doesn't lose out in any way, financially or otherwise! It's just an option we're looking at! My dad or sisters might feel differently and my partner is worried if anything happened to me, the home we would be paying for together would not be his own! This is obviously were contracts and solicitors would get involved! My mother offered as she feels there are no other options, I feel that the government may bring in more affordable housing schemes or maybe rent to buy schemes because of the scrutiny by the media on the current housing market and I'm willing to hold out for a year or two! It seems my partner and I are stuck between a rock and a hard place in regards to our situation.

You don't qualify for the mortgage you want for good reason - just take some time out and let your partners business get on its feet. I wouldn't dare buy an asset with a parent, it's too complicated. I mean the mortgage may be capped in terms of length due to your mothers age, and the repayments may crucify you altogether.

Get some professional advice and then have a family meeting about it.

The_Conductor

The_Morrigan wrote: »

the mortgage may be capped in terms of length due to your mothers age, and the repayments may crucify you altogether.

Exactly.
Typically in a situation like this- the term of the mortgage would be 12 years- aka up to your mother's 65th birthday- at a stretch 15 years, her 68th birthday.

Plug the figures into a calculator- could you afford the repayments if the term was only 15 years?

You need to keep saving.