UK buyer coming up short

Friend who resides in UK is trying to buy an investment property here for 205k. Can't release equity in his ppr in UK due to it being a 50/50 mortgage with a housing association. Savings minimal. Irish lenders maxing out at 188,000 euro. Property valued at 235k and only 80% being offered by lenders. Seems to have run out of options. With stamp duty, solr's fees etc he is short circa 30K. Any ideas as he is really anxious to pursue the purchase.

UK 50/50 mortgage

Does anyone have any knowledge of a 50/50 type mortgage in use in UK.. Friend of mine has one and is trying to buy a property in Ireland. His Bank tells him that because of the type of mortgage, he cannot release equity from his home ( 50% of hse. is owned by a Housing Association). He has circa 45k left on his 50% with the house valued at 400k. His income (according to bank) will not allow him to buy out the full 50% owned by Housing Ass. - 30% possibly. Has he any options??

Re: UK 50/50 mortgage

Why is someone who owns only 40% of his PPR and can't afford to buy it out looking abroad for an investment, with an added currency risk? Unless he intends to move to Ireland this doesn't seem to make any sense.

Re: UK 50/50 mortgage

Ron J said:

Does anyone have any knowledge of a 50/50 type mortgage in use in UK.. Friend of mine has one and is trying to buy a property in Ireland. His Bank tells him that because of the type of mortgage, he cannot release equity from his home ( 50% of hse. is owned by a Housing Association). He has circa 45k left on his 50% with the house valued at 400k. His income (according to bank) will not allow him to buy out the full 50% owned by Housing Ass. - 30% possibly. Has he any options??

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As I understand he has £50K worth of equity and wants to own 200k plus 200k = 400k of property on a lowish income - at 5% IO on both properties thats 20k a year. Advice would be to either sell the UK property or forget about the Irish one.

He appears to have £155k equity (English house valued £400k), but Maine's advice still holds. I'm sorry we can't be of more help Ron, but the numbers make this proposal seem very high risk.

I agree with ye that the sums dont add up. He intends moving to Ireland in the next few years and has an option on this house at 205k which is about 10-15k less than the market price. I think he will have to do some work on trying to buy out his UK 50/50 mortgage first so that he can have access to the full potential equity. This 50/50 mortgage seems to be the main problem and also the fact the house prices in his area have grown sharpely in the last few years. I presume that if he was to folow up on trying to buy out the 50/50 mortgage he would need to have the property valued as low as possible so as to keep the 50% owed to the Housing Ass. at a managable level ??