Buying with a family member - risks?

InPsyDer

I was having a chat with a family member about the long slog to save a deposit on a single income, and we mulled over the possibility of buying a house jointly, with a view to eventually reselling and hopefully making a profit. My question is, in a case where a house was bought in both our names but one of us is married, could a marriage breakdown force the house to be sold against our will? How does splitting up matrimonial assets affect property that your partner doesn't wholly own? Would be interested to know more, thanks.

Stanford

Is it the intention for both of you to be co-mortagees and have the property in joint names?

InPsyDer

Yes, co-mortgagees would be the plan

Stanford

InPsyDer wrote: »

Yes, co-mortgagees would be the plan

I assume joint owners on the title?

InPsyDer

Everything joint, in our two names only.

Stanford

InPsyDer wrote: »

Everything joint, in our two names only.

Are either of you married at the moment?

InPsyDer

Yes, that's why I'm wondering about this point.

Stanford

Assuming that either of you is married and assuming the marriage was to end the court would have to make a property adjustment order in any seperation/divorce proceedings and the spouse would make a claim on the half share owned by the other party as being an asset of that party.

If there are kids involved the situation is even more complex, I suggest you both seek legal advice

InPsyDer

Ok, that's good to know. Only at discussion stage so far but wanted to see what the facts were on that. Thank you.

Stanford

InPsyDer wrote: »

Ok, that's good to know. Only at discussion stage so far but wanted to see what the facts were on that. Thank you.

No problem, you may be entering a tricky situation so get good legal advice before you do anything. Good luck.

Claw Hammer

I would think you would have difficulty getting a mortgage under those conditions. A bank would regard it as too much hassle.

zl1whqvjs75cdy

You'd also want to be careful about a fall in property price. If you only want to live in this arrangement for 5 years for example, what's the plan if property falls and you can't shift it.

robo

Not sure if the bank would have to know your relationship status(cousins or not) but when buying you could discuss this and have a contract drawn up between you both with your solicitor.

If one of you cant meet the committments in years to come, does the other become liable for everything?

Also, you seem to be approaching this as an investment. Consider the impact this borrowing would have if one of you wanted to raise a mortgage for a house to live in yourself.

C3PO

The fact that you are related is immaterial really! Lots of people buy properties as joint business ventures - the important thing is that you both take legal advice and put a contract in place that sets out the agreement!

Claw Hammer

Deleted User wrote: »

If one of you cant meet the committments in years to come, does the other become liable for everything?

.

Yes.