Mortgages

[Joe_Fox]

Calling all home owners and estate agents or anyone who knows anything about mortgages and property.

Me and three mates are thinking about buying a house.
It's 4 bedrooms and costs £245000.

Quick questions:

- one of us is unreliable - if, after a while he falls behind with payments, is it easy to simply buy him out and then rent the room out? What are the costs involved?

- contracts - is a four way mortgage four separate contracts or one joint contract?

- risks - what are the risks involved?

- costs - what costs are involved with buying a house and setting up a mortgage.

- advice - any general advice about this idea?

This is obviously a massive decision so your learned advice will be warmly accepted.

Thanks,
Joe_Fox

 

[highland fox]

You are becoming very sensibe Joe,you'll be asking for advice on Pensions soon.

 

[Durham Fox]

Calling all home owners and estate agents or anyone who knows anything about mortgages and property.

Me and three mates are thinking about buying a house.
It's 4 bedrooms and costs £245000.

Quick questions:

- one of us is unreliable - if, after a while he falls behind with payments, is it easy to simply buy him out and then rent the room out? What are the costs involved?

- contracts - is a four way mortgage four separate contracts or one joint contract?

- risks - what are the risks involved?

- costs - what costs are involved with buying a house and setting up a mortgage.

- advice - any general advice about this idea?

This is obviously a massive decision so your learned advice will be warmly accepted.

Thanks,
Joe_Fox

My advice - Dont even think about it! Its difficult enough to sort things out when things go wrong when 2 people commit and are also meant to have commited to each long term. Add 2 people to that, remove the personal commitment and its a recipe for disaster.

 

[homer]

It's a recipe for absolute disaster, Joe

At some point in the life of all four joint mortgagees, they will want to get out and do their own thing.

This will be a nightmare every time you do it

Guaranteed that you will no longer be friends further on down the line if you do this

 

[Joe_Fox]

But surely if the dangers are explored and addressed before any commitment is made, there shouldn't be any problems.

 

[Darth Vodka]

don't touch it

see if you can get the mortgage yourself and they can pay you rent

and if they pay you rent, get a proper contact and a month in advance

 

[Joe_Fox]

It's a recipe for absolute disaster, Joe

At some point in the life of all four joint mortgagees, they will want to get out and do their own thing.

This will be a nightmare every time you do it

Guaranteed that you will no longer be friends further on down the line if you do this

Thanks,
How else will we ever get on the (ever getting higher) first rung of the property ladder though?

 

[homer]

Thanks,
How else will we ever get on the (ever getting higher) first rung of the property ladder though?

Work exceptionally hard (and honestly) on drawing up three cast iron short-term let contracts with your mates

Then go along to a nice building society and go for a buy-to-let mortgage. If you have the guaranteed contracts in place (with, therefore, a guaranteed income), then they might just go for it

 

[drew]

He will need 15% deposit for a BTL mortgage. Do you have 40k? Plus another 1.5% stamp duty.

 

[Siouxsie]

My friend has just bought his ex g/f out of the house they bought together. It hadn't occured to me that this would be treated like any normal sale and he ended up having to pay stamp duty etc again.

I would say 4 friends would be a nightmare. If one left would the other 3 even have enough money to buy out the 4th? There will also be one who is late paying and doesn't want to contribute to breakages / repairs / maintenance.

 

[Joe_Fox]

Keep them coming guys, this help is invaluable. Thanks.

 

[highland fox]

Work exceptionally hard (and honestly) on drawing up three cast iron short-term let contracts with your mates

Then go along to a nice building society and go for a buy-to-let mortgage. If you have the guaranteed contracts in place (with, therefore, a guaranteed income), then they might just go for it

Who asked you to stick your snout in ?

 

[homer]

Who asked you to stick your snout in ?

I'm everyone's spokesman on here - you know that, HF :icon_lol:

 

[Joe_Fox]

So the general consensus is don't touch with a barge pole. Is there not any way that this joint venture could work?

What if there are strict clauses in the contract and massive outlining of the commitment?

 

[Yorkshire Vixen]

youre better off going on your own joe then there wont be any need for rules and regs etc and any misunderstandings

 

[homer]

So the general consensus is don't touch with a barge pole. Is there not any way that this joint venture could work?

What if there are strict clauses in the contract and massive outlining of the commitment?

But Joe, what if (by some God-given miracle) you find a girlfriend and want to settle down, get married and buy your own place. Or (more likely) that happens to one or more of your three co-mortgagees

You go to your three buddies and tell them you want out, but none of them can afford to buy you out (or they simply don't want to) and the chances of finding someone who will buy a quarter share in your 'contract' is pretty much nil. So you are stuck with it (or you force them to sell the house, and therefore disrupt everyone's lives and end up being mortal enemies)

And that situation could last for years

It's a disaster waiting to happen

 

[Durham Fox]

You would be in a minority Joe, a 4 way split is a complete recipe for disaster. You could end up with a 1/4 share in a place that you dont want but can't sell.

Steer well clear. Youd be as well to rent for all the good owning a 1/4 of something will do you.

 

[Steven]

But Joe, what if (by some God-given miracle) you find a girlfriend and want to settle down, get married and buy your own place. Or (more likely) that happens to one or more of your three co-mortgagees

Voodoo more likely. :icon_wink

 

[drew]

Tell them to go thirds and rent a room. I wouldn't enterain a 4 way split unless it was with 3 hot birds with a nasty habit of walking around naked and having play fights.

 

[fosseboy83]

Tell them to go thirds and rent a room. I wouldn't enterain a 4 way split unless it was with 3 hot birds with a nasty habit of walking around naked and having play fights.

the rule i live my life by