Buying family home with sibling retaining 1/3 share of the property

firstsibling

New Member
Messages
1
Hi all,

I'm hoping someone can help me. Our family home was left to myself and my two siblings after my father passed and I'm looking to get a mortgage to buy one of my siblings out as my other sibling is happy to retain their 1/3 share of the property (which means I don't have to buy them out and can get a smaller mortgage). I've been informed however that banks will not approve my mortgage application if one sibling still owns part of the property. I have discussed this with my sibling and fully intend to out in place legal agreements re ownership etc that should protect the bank from issues here - I've informed my mortgage advisor of this but have been told that a bank still won't approve my mortgage application if I cannot own the property 100%. Is this always the case or has anyone gotten a mortgage in such a situation?
 

Seagull

Frequent Poster
Messages
1,200
The issue from the bank's perspective is that they wouldn't have any real security against the loan. They can't sell 2/3 of the property in the case of you defaulting.
 
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