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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

WWYD? - property advice

27 replies

Username863478 · 03/06/2018 18:17

Living in a 2 bed flat currently with DH and 1 year old DS. Relatively small, nicely furnished, and quite cheap overheads. Ideally we would like more space for DS as he gets older as 2 bedrooms is a bit of a tight squeeze. We won’t be able to afford to move for at least 10 years as I’m a SAHM and DH doesn’t earn enough to get a mortgage on a larger property.

We’ve been given an opportunity to move into a deceased relatives house. The house is huge - 5 bedrooms (including a large loft conversion), 2 sitting rooms, and a massive garden. The problem is, the house needs ALOT of work. Around £50-£60k which we don’t have at the moment. Also, we can’t afford the mortgage on this house, so another relative has offered to pay for 1/3 of the house (so he would effectively own a third) and we would get a mortgage for the other 2/3.

Leaving aside any potential disagreements over the relatives involvement in the property (what if we want to sell in future? What if DHs relative wants his 1/3 investment and we can’t afford to buy him out? What if DHs relative dies? Etc), would you go for it? The house is liveable but very old fixtures and fittings so a new kitchen, bathroom will be required, plus every room needs decorating quite extensively. We don’t have the money for this so would have to live in pretty rough conditions until we had some surplus cash, which may not be for a few years.

I have my reservations because our 2 bed flat is so lovely and it feels like our family home, but it’s just not big enough for our growing family (especially if we considered baby number 2). OTOH, the bigger house will be a fantastic family home once it’s decorated and cleaned up. But that may not be for a long while and I don’t know how I feel about living in these conditions in the meantime.

WWYD?

OP posts:

Original poster

Username863478 · 03/06/2018 18:49

Anyone?

OP posts:

Timeoftheseason · 03/06/2018 18:57

It sounds very complicated. So if you pay £50 k to improve the house and the relative wants to sell, would you be happy paying them a third of the improved house price.
Also, I'm not sure how the mortgage company would view it.
Does this mean the relative will be linked to your financial records.

If you are happy where you are I'd stay put.

NorthernLurker · 03/06/2018 18:59

Snap your relatives hand off! Get it all signed and sealed, you need to ensure that you are secure if he/she dies but basically you've got the chance of a huge step up and a lot more space. Two beds may feel fine now but In a years time when your baby is toddling everywhere and you are desperate to add another child to your family your lovely small flat is going to feel like a box.

Munchyseeds · 03/06/2018 19:03

As long as it is all done legally I would do it, do it up slowly as money and time allow

lalalonglegs · 03/06/2018 19:06

Would you be able to get a mortgage on a house where this other relative had part-ownership? If you can, then you need to sit down and have a proper agreement drawn up which will outline the scenarios you mention (what if one party wants to sell; how will any profit - if there is any - be split; what sort of time frame would the relative want to keep his money in the house for; who gets to decide what is done to the house; what happens if you and your husband divorce etc etc).

TeeniefaeTroon · 03/06/2018 19:09

Have you thought about how much it'll cost to heat? We moved from a 2 bed house to a much larger 4 bed house and our heating bill and electricity has trebled. Also our council tax has doubled.

Original poster

Username863478 · 03/06/2018 19:12

Yes I know we’ll have to get something drawn up by a solicitor beforehand - at the moment it’s just a discussion between us and family member to see if we’re interested.

My main worry is leaving a property that I’ve lovingly furnished for the last 6 years into a grotty house that I’ll have to put up with for at least a couple of years until we can save enough to start redoing it.

OP posts:

Foxyloxy1plus1 · 03/06/2018 19:14

You’d surely need to consult a solicitor to ensure that any agreement is watertight and that you will ultimately get out of it the proportion you put in. You’d also need to ensure that any renovation work you undertook was accounted for in that.

There’s a thing called tenants in common that I think means a shared responsibility and covers all parties, but I wouldn’t entertain the idea without getting a cast iron, legally binding arrangement.

AJPTaylor · 03/06/2018 19:38

it would depend on the relationship with relatives and their motive.

Allthewaves · 03/06/2018 19:42

Depends. Lived in similar house and moved out. The heating was rubbish so the house was freezing in winter, making us miserable. Council tax was a fortune as was the electric bill due to the size of the house.

We left and moved into a much smaller house.

Allthewaves · 03/06/2018 19:43

Also are the electrics safe and up to date?

Booboostwo · 03/06/2018 19:45

Sounds like a good way to fall out with your relative. Can you not sell the house and use the money to buy a more affordable property?

Slightlyperturbedowlagain · 03/06/2018 19:47

Hm my dad has had difficulties with a house in shared ownership with his brother. His brother decided to move into it without consultation despite knowing my dad needed to sell to put his share towards a sensible retirement property. Personally I would avoid any sort of part-owned property like the plague.

ForgivenessIsDivine · 03/06/2018 19:54

Who owns the property and who are you buying it from if the former owner is deceased?

Flupibass · 03/06/2018 19:56

I wouldn’t hesitate. So what if you have to live in not so perfect conditions for a while. It will be far more of an asset in the end than your flat. Where’s your sense of adventure?

ForgivenessIsDivine · 03/06/2018 19:57

If your DH cannot get a mortgage on something reasonably sized, what makes you think he can get a mortgage on something so large?

I would be concerned about the ownership and how you would account for any increase in value. If relative pays 1/3 now but you do the house up. how is the increase in value split?

Tread carefully..

Maelstrop · 03/06/2018 19:59

Sounds fab, no different from shared ownership with the council. Just get very good legal advice and ensure it’s all drawn up tightly, you need to protect any future investment you make. Will you pay rent then eventually own 2/3?

hibbledibble · 03/06/2018 20:01

50-60k to do a house up is very, very expensive. Have you had several quotes, or is this just a figure you have pulled out of the air?

Unless there is major structural issues it can be done for far less.

The ownership issue sounds fraught with difficulty as others have pointed out. What will the relative gain from buying one third of the property?

CowInTheMeadow · 03/06/2018 20:08

I was thinking go for it, until you described it as 'rough conditions'. It sounds like the extra space is not worth giving up your lovely flat for. The big, run down house could be a total money pit, which would be a big shock if you're used to renting (ie calling the landlord to fix things when they break).

Is the location of the big house good for you?

Only you know what the place is really like and whether you can see yourself being happy living there.

teaandtoast · 03/06/2018 20:12

Does the relative eventually see themselves moving in with you?

3boys3dogshelp · 03/06/2018 20:13

What kind of area is the bigger house in? Can you see yourself living there long term? Are the schools good? Will your ds have friends to play with?
I don’t know whether I would do it or not. It would definitely also depend on how close I was to the relative and how easily they could spare the money to pay for their chunk.

brizzledrizzle · 03/06/2018 20:14

I would go for it but make sure that you have a legal agreement which covers all eventualities like you needing to move, the other person wanting to sell etc etc.

You can do up one room at a time, you don't have to do it all at once.

cestlavielife · 03/06/2018 20:24

Very old fixtures could be a a lot more than your 50k....

Plus maybe double the running costs to a flat.

Who pays to do it up and does the relative benefit from the increased value?

Mammyofonlyone · 03/06/2018 21:13

From an immediate POV I'd say it depends on the state of the house. If it is just a bit old fashioned/grubby/etc I'd say it was worth living with until you could afford to do it up to your taste. If it's unsafe/freezing cold/would make day to day life uncomfortable for the foreseeable future I may think again

Mammyofonlyone · 03/06/2018 21:17

I'd also add (as someone living in an old 5 bed house) are you sure £50-60k is enough? Literally EVERYTHING on our house ended up costing more eg a new kitchen revealed the drains were rubbish so we had to re lay all the outside drainage as well as paying for the new kitchen, 3 out of four chimneys were condemned when I had them swept so fires couldn't be lit until we had them sorted out, exterior house was painted to reveal windows were rotten beyond repair so had to pay for a lot of new windows.

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