Mortgages

[Joe_Fox]

It's a shame really, this house is really nice and a bargain.
How is anyone supposed to get on the hosuing ladder these days with the prices the way they are???

 

[fosseboy83]

It's a shame really, this house is really nice and a bargain.
How is anyone supposed to get on the hosuing ladder these days with the prices the way they are???

wait for it to collapse thats the only thing ive got my hopes pinned on (that and a rich relative crocking it:icon_lol

 

[Darth Vodka]

It's a shame really, this house is really nice and a bargain.
How is anyone supposed to get on the hosuing ladder these days with the prices the way they are???

unfortunately the world does not owe you, nor anyone else, a house

your options are:-

- rent
- live with your parents and save for a house
- live with a bird and save for a house
- buy somewhere small
- earn more

 

[Darth Vodka]

another thing: the decision to sell

surely that goes on ONE person's decision, the person who has their name on the deeds?

 

[spionfox]

unfortunately the world does not owe you, nor anyone else, a house

your options are:-

- rent
- live with your parents and save for a house
- live with a bird and save for a house
- buy somewhere small
- earn more

Just make sure you pick one who will be a cheap date and is happy to stay in every night with you watching the 12" B&W portable in the corner.

 

[Leesoh]

Land law and trusts!! Ho ho! I have just finished this module, and it is relatively straightforward and yet complicated at the same time.

I have tried to explain things simply, but keep on having to delete it because it's far too long winded and boring!

Basically there are two different types of co-ownership; joint tenancy and tenants in common. This affects the equitable interest in the property, not the legal estate, but if I was going to buy a place with my mates I would go with the tenancy in common, as this gives you a "share" of the property, and then get an equitable mortgage based on my own share. It's alright in theory, but they didn't tell us whether lenders would do this, only that it is possible.

If you want to PM with any questions, Joe, feel free, and I will try to answer what I can, but I would advise you to get professional legal advice from someone who has qualified before making the decision.

 

[Macky]

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

Don't do it Joe, just DO NOT do it, it will be the biggest regret of your life no matter how appealing it may seem now, it WILL be a disaster.

I bought a house with one of my mates when I was about twenty, we started off as the best of friends, but within 6 months we were kicking each other up & down the street, literally.

It's bad enough sharing a mortgage with one person but three others?!?!?
You'd have to be a mentalist.

 

[Yorkshire Vixen]

Don't do it Joe, just DO NOT do it, it will be the biggest regret of your life no matter how appealing it may seem now, it WILL be a disaster.

I bought a house with one of my mates when I was about twenty, we started off as the best of friends, but within 6 months we were kicking each other up & down the street, literally.

It's bad enough sharing a mortgage with one person but three others?!?!?
You'd have to be a mentalist.

the clues are all there macky

 

[drew]

It's bad enough sharing a mortgage with one person but three others?!?!?
You'd have to be a mentalist.

In truth he has the credentials.....

 

[MKFox]

I bought a house with one of my mates when I was about twenty, we started off as the best of friends, but within 6 months we were kicking each other up & down the street, literally.

 

[Real Sharapova]

I bought a house with a mate and it worked brilliantly as at the same time he wanted to sell up to get married I wanted to sell up and move to the leafier side of town, but I suppose that was more down to luck than anything else. Trying to buy a property with four of you would in the end be pretty unworkable IMO. Also, if one has a bad credit history it is unlikely you would get a joint mortgage. Sorry to pour cold water on the whole thing, but personally I'd leave well alone.

 

[fcukcov]

I think you should just go for it Joe.


Oh and update us as to how it is going on a month by month basis.

 

[drew]

I think you should just go for it Joe.


Oh and update us as to how it is going on a month by month basis.

A great social experiment, go for it Joe.

 

[consty]

Homer's post (no.16 I think) puts the argument against as do several others. sadly, I agree with them. As a long time socialist and advocate of alternative ways of living and alternative societies, you'd think I'd back going for this. But I don't. Homer's said why.
Some smaller, practical fall-outs likely to occur: The 4 of you are unlikely to agree on the things needed collectively for a house - repairs, improvements, new appliances, new furniture etc. A house is a money pit if you've never owned one yet, you'll find out... There are lots of things to spend on that you never even think of when you rent or if you live with parents. Owner occupiers also tend to raise their budgets considerably for things to acquire than renters do, which is also an eye-opener to come. Even when you do agree on things to buy unanamously (rare) you're unlikely to agree on how much you should spend. How would you like it if the others want to spend £300 on something but you think £100 is enough, or vice-versa. Or you think redecoration is needed, and they don't? (expensive to pay for it alone or with one other partner - you'll resent the others - or also resent living with the old decorations if you can't stand them.)
Don't risk losing friendships over this. If one can't afford what one wants, the answer sadly is to go without and wait until you can, or go for something cheaper. If one can never afford it, then sadly one can never have it, but hopefully that will not be the situation with you forever. If you've got a decent salary, or can look forward to one, and a future partner is the same you'll get something in the end.

 

[fcukcov]

Homer's post (no.16 I think) puts the argument against as do several others. sadly, I agree with them. As a long time socialist and advocate of alternative ways of living and alternative societies, you'd think I'd back going for this. But I don't. Homer's said why.
Some smaller, practical fall-outs likely to occur: The 4 of you are unlikely to agree on the things needed collectively for a house - repairs, improvements, new appliances, new furniture etc. A house is a money pit if you've never owned one yet, you'll find out... There are lots of things to spend on that you never even think of when you rent or if you live with parents. Owner occupiers also tend to raise their budgets considerably for things to acquire than renters do, which is also an eye-opener to come. Even when you do agree on things to buy unanamously (rare) you're unlikely to agree on how much you should spend. How would you like it if the others want to spend £300 on something but you think £100 is enough, or vice-versa. Or you think redecoration is needed, and they don't? (expensive to pay for it alone or with one other partner - you'll resent the others - or also resent living with the old decorations if you can't stand them.)
Don't risk losing friendships over this. If one can't afford what one wants, the answer sadly is to go without and wait until you can, or go for something cheaper. If one can never afford it, then sadly one can never have it, but hopefully that will not be the situation with you forever. If you've got a decent salary, or can look forward to one, and a future partner is the same you'll get something in the end.

Do you ever get bored of being sensible?

 

[Joe_Fox]

Any rich birds fancy a shag?

 

[Steven]

Any rich birds fancy a shag?

A cardboard box for you then.

 

[Leesoh]

Homer's post (no.16 I think) puts the argument against as do several others. sadly, I agree with them. As a long time socialist and advocate of alternative ways of living and alternative societies, you'd think I'd back going for this. But I don't. Homer's said why.
Some smaller, practical fall-outs likely to occur: The 4 of you are unlikely to agree on the things needed collectively for a house - repairs, improvements, new appliances, new furniture etc. A house is a money pit if you've never owned one yet, you'll find out... There are lots of things to spend on that you never even think of when you rent or if you live with parents. Owner occupiers also tend to raise their budgets considerably for things to acquire than renters do, which is also an eye-opener to come. Even when you do agree on things to buy unanamously (rare) you're unlikely to agree on how much you should spend. How would you like it if the others want to spend £300 on something but you think £100 is enough, or vice-versa. Or you think redecoration is needed, and they don't? (expensive to pay for it alone or with one other partner - you'll resent the others - or also resent living with the old decorations if you can't stand them.)
Don't risk losing friendships over this. If one can't afford what one wants, the answer sadly is to go without and wait until you can, or go for something cheaper. If one can never afford it, then sadly one can never have it, but hopefully that will not be the situation with you forever. If you've got a decent salary, or can look forward to one, and a future partner is the same you'll get something in the end.

I disagree. With properly drafted contracts, there should be no problems on that side, and if the ground rules are laid down and adhered to, there's no reason why it shouldn't work out in terms of day to day living arrangements.

Houses for multiple occupation are on the increase in the rental market, so it would only be a matter of time before people start to think that they can do it alone and have something to show for it, and not pay money to a landlord.

 

[consty]

Do you ever get bored of being sensible?

Oh, I can go 'off on one' and be thoroughly crazy. People may recall...

 

[consty]

I disagree. With properly drafted contracts, there should be no problems on that side, and if the ground rules are laid down and adhered to, there's no reason why it shouldn't work out in terms of day to day living arrangements.

Houses for multiple occupation are on the increase in the rental market, so it would only be a matter of time before people start to think that they can do it alone and have something to show for it, and not pay money to a landlord.

But its one thing to let your desire for the unattainable cloud your judgement but to think taking this risk is little or no risk at all by thinking that 'yes, if we draft a document all contingencies will be taken care of..' is mistaken. Life isn't like that. I'm afraid, it really isn't. Once you're all in the house together, its a different ball game. People will see and feel about things differently. New contingencies and circumstances will arise that the docment didn't forsee or - more likely - the signitaries didn't really realise the situations that would arise, the many householder and on-going decisions that would need to be taken, the costs involved, and the difficulites in decision-making (particularly in making unanamous ones). Document or not, without being unnanamous on things, trouble is building up after each and every decision.