To think that if I buy a flat my boyfriend could live in it, then my children could when they go to university and then I could retire ? Or totally naive . First time buyer and clueless

[Lookingforahome2019]

Please help.

NC for a this as about to give full personal details!

I've never bought a property and I'm 39 with 2 DC, 8 and 5. Left abusive exh 3 years ago. I earn 50k PAYE and and extra 12k pa self employed.

I rent a house in the south east which costs 975 pcm. Obvs I am worried this is unsustainable going into retirement.

I'm looking at buying a 2 bed flat in a new build in the city local to me which has a university in it.

My boyfriend is lovely - been together a year - very good with money v reliable and earns a lot less than me and is struggling to move out of his parents.

The flat I am looking at is this one:

www.rightmove.co.uk/property-for-sale/property-69936622.html

I don't have lots of savings and I don't know where to start - would a BTL mortgage be difficult? Should I get boyfriend who earns 28k pa to get a mortgage with me for it and rent him out my share, at a non market rate obvs? Can I get legally binding contracts which say I want my kids to have it for uni years if we break up?

Is this a ridiculous idea?! Just desperate to have some security of where I could live in my old age. Thanks for any thoughts in advance

"It's a good investment and a nice place."

It might be a nice place, but it's not a good investment, @willieverthinkofaname.

It's a shared ownership property. OP would only own 25% and would pay a (probably hefty) rent to the Share company for the other 75%. She would always pay that rent. Even when her mortgage on the property was fully paid.

Just had a look at the Rightmove listing - you'd only be buying 25% of the flat (full market value is 255k to 267k), the mortgage (assuming 10% deposit) would be £300 per month for 25 years, there's a service charge of £185 per month and the rent would be about £450 per month. That sounds like a lot to me.

Sounds like a terrible idea sorry. Can't you just buy a house and all live in it? It seems like a bum deal for your bf to pay the rent and what if your kids don't want to go uni or what if they do but bf doesn't want to leave ? So much could go wrong here.

I missed that it was a shared property.

On top of everything there are rules about selling/buying these which could cause implications if you want to buy out your P share if the worse happens.

Do not tie yourself financially to your boyfriend.

But by all means buy your own flat for you and your dc's and throw every spare penny at mortage overpayments.

Unfortunately it will be very difficult to get a buy to let mortgage unless you own property already. Shared Ownership doesn't allow renting out (or it's very unusual for it to be allowed). As pp have said, but in your own name and further down the line get permission to let them move into a rental and let yours. Lots of legal obligations with being a landlord, whether it's to a boyfriend/relative or not.

Yeah I am definitely not with you on this sorry OP. Sounds batshit sorry.

Why as a single person on 28k is he struggling to live on his own? Why is it up to you to help him get into property?

Huge congrats on leaving an abusive relationship and making a great new life for yourself.

With your income, it makes sense to buy, but personally I wouldn't look at Shared Ownership places if you don't need to. It's great for those with few other options, but there are downfalls too.

You should be able to buy on your income in Southampton. I assume it's more a deposit problem? Can you aggressively save for a year or so?

And like others have said, for now I would leave the boyfriend out of the equation. Also... please don't fall into the trap of financially subsidising him. You're not saying you are doing that, but it's an easy habit to fall into. By the sounds of it, you need to build up your savings and further ensure you and your kids are (financially) secure in the future.

You can't get a BTL without owning a residential property.
Your children may not want to go to university.
Your boyfriend's housing is not your issue.
If you have money and are paying over the odds renting, buy a property to live in, your boyfriend can move in if he wishes to under some financial arrangement-but I wouldn't have him buy with you after just a year. What would be his plans if not with you? Live with/off his parents forever?
I personally think you're bonkers renting so expensively when you have the finances to buy..Go and speak to a mortgage broker about your borrowing power. If you buy sensibly and want a BTL you should be able to within a few years, or less depending on your savings.

I’ve just seen he lives with his parents! And is struggling on £28k? Don’t even let him rent a place from you OP. This has all the hallmarks of a cocklodger. You need to look after you and your DC. Let his mummy and daddy worry about him.

Am I being really dim? Where would you and the children be living while he was in the flat? Where would you live when you retire?

I don't understand your reasoning at all OP.

You want to go on renting for you and your DCs while you buy a flat so your BF, who you have only known for a year, can rent it at a cheap rate, a flat that you are going have to pay out for every time something needs fixing, or updating; I've recently paid out just over £4000 on the house I rent out on replacing fittings due to wear and tear.

His financial situation and problems are not something that it's your responsibility to sort out or solve.

Buy a home for you and your DCs. You have 10 years before the oldest would be going to university and as pp have said they might not want to, or at least not to one near home.

If you get a mortgage now for your own home, by the time you retire it could be paid off. That will give you plenty of security when you retire.

If you do want to buy a flat on a BTL mortgage that's something to look into but do it as a security for you, not your BF, who can take care of himself, and let it out to a stranger who you charge the going rate for flats in that area.

What you're thinking of doing is muddying the waters of your relationship and you're opening yourself up to be taken advantage off. It's a very bad idea.

Take care of you and your DCs. This relatively new man in your life is not your responsibility.

Woolston is a right pain in relation to the local universities. By all means look there, but you could get much more for your money there than this one...however flash it looks.

But your idea is a bit bonkers, your boyfriend is a grown adult and should not be your prioii.

Priority 🙄

Buy a house for you and your children. Then you can live in it when you are old. Let the boyfriend sort himself out.

Total batshit idea

Agree with @slcol.. Its a 2 bus journey to uni from there. And awful traffic.. For near a uni you need. Bassett, Swaythling, ports wood, inner Ave. Area.

As PP have pointed out part ownership properties usually have a "no letting" clause in the deeds.
Probably not tax terribly tax effective to pay rent on the home you live in and receive rental income from a property you own. You will have to fill in self assessment forms and keep records etc.
Let your boyfriend sort his own housing situation out.
See a mortgage advisor and find out how much you can borrow based on your current salary.
look to buy a home to live in, take advantage of the low mortgage rates and you may find it is cheaper to buy than pay rent.

This is Crazy!! A guy earning 28k struggles to move away from mum and dad?? What age is he?

His housing is not your problem, in fact I’d question getting involved with someone who isn’t standing on his own two feet. Unless he moved in following a breakup or something.

First home means no stamp duty

Only if you intend to live there though. So you would be paying SDLT in this case (I’m assuming it’s over the threshold? I’ve not clicked the link)

Also, for CGT you would be much better investing in a home you’d be living in.

This is Crazy!! A guy earning 28k struggles to move away from mum and dad?? What age is he?

This is a very good point!

Looking I think what you are really looking for is a crystal ball. You are hoping all that will work out, what are the chances?!

I for one am glad you asked though, definitely keep asking and getting advice, and refining your plan but being only 39, with such young children and a possible new relationship on the horizon I'd say do nothing - are you sure you can't afford something nice on your wages BTW?

Daft idea and not do-able anyway with restrictions on BTL and shared ownership. Did you realise it was only a 25% share OP?

Oh and the "one bedroom house" for £325 pcm a PP linked to is a broom cupboard-sized room in a shared house.

Ohh finally got the link to work and you’d be way under the SDLT threshold. But this? That is a lot! Even if you did retire to this place and your mortgage had been paid off, the service charge and rent you’d be paying wouldn’t be a whole lot less than you’re paying now