mickoneill30
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My folks own a second house that myself and my fiancee are renting from them. They own it outright with no mortgage. I'd like to buy it but its value is about €500,000 which is out of our league. With the way property is increasing it's accelerating further out of our league quicker than we can ever save for it.
Before we moved into it my dad was thinking about selling it and investing the money elsewhere.
My options are to
1: Keep renting indefinitely.
2: Buy somewhere else and let my folks sell their house.
3: Buy a share????
It's the buy a share I'm interested in but I don't know if it's possible and what the legal ramifications were. I could get a mortgage of about €300,000 and buy whatever percentage of the house that would pay for. Then I would rent the remaining percentage from my folks. In 10 or 20 years we could then either purchase the remaining percentage for its worth then or sell the house and give my parents their share.
So if it was worth €500,000 now and I borrowed €300,000 then I'd own 60% of the property. I'd pay my parents 40% of the rent and in the future I would either purchase the extra 40% of what the house was worth in the future or sell up and give them their 40%.
But, is this possible? Are there any lenders that would do it? Would a lender give me a mortgage for 60% of a property. I can see problems for them if I defaulted on the loan and I only owned part of the property.
I realise we'd need legal agreements between me and my folks on what to do with the property after 10 years or what to do if one of us wanted to get out early. That's not the hard part.
Does anybody have any experience in this type of thing or any ideas?
Before we moved into it my dad was thinking about selling it and investing the money elsewhere.
My options are to
1: Keep renting indefinitely.
2: Buy somewhere else and let my folks sell their house.
3: Buy a share????
It's the buy a share I'm interested in but I don't know if it's possible and what the legal ramifications were. I could get a mortgage of about €300,000 and buy whatever percentage of the house that would pay for. Then I would rent the remaining percentage from my folks. In 10 or 20 years we could then either purchase the remaining percentage for its worth then or sell the house and give my parents their share.
So if it was worth €500,000 now and I borrowed €300,000 then I'd own 60% of the property. I'd pay my parents 40% of the rent and in the future I would either purchase the extra 40% of what the house was worth in the future or sell up and give them their 40%.
But, is this possible? Are there any lenders that would do it? Would a lender give me a mortgage for 60% of a property. I can see problems for them if I defaulted on the loan and I only owned part of the property.
I realise we'd need legal agreements between me and my folks on what to do with the property after 10 years or what to do if one of us wanted to get out early. That's not the hard part.
Does anybody have any experience in this type of thing or any ideas?