Buying a house with someone but only me and dd will live in it.

[Lmccrean]

I am looking to buy a house and a friend is thinking of going in with me on it, as I cant afford it on my own.

Im completely lost on how it would all work!

Should it be 50/50 re mortgage price, and 50/50 on any major work then I pay her some rent money every month?

She says she would want the money back within 3 years, which I guess is fine - I can remortgage...right???

Anyone any experience on this? Or know where I can get advice?

Am not going to pretend to be an expert, so feel free to ignore me, but we bought our house 3 years ago and it was affordable on our income but we could not afford to remortgage to payback someone half the asking price. (although of course we have been paying the full morgate for 3 years - I did tell you I am not an expert)

3 years comes around quickly. I know a little about this as dp and I looked into separating not to long ago and we investigated him kepping his investment in the house until I could afford to pay him back and it was longer than 3 years

Ill admit, ive no idea how remortgaging works....but i figure going 50/50 with a friend so we both profit, is better than the gov scheme taking it, and profiting...

I think you need to be very careful here. Although people have made large profits on housing in the past, do you think that there is going to be much profit to make in the three years? You may believe that the housing market has a way to go in terms of house prices, who knows, but affordability is very difficult at the moment. However, the fact that you are struggling to buy this house in the first place, tells you that you are going to struggle to give your friend 50% of the mortgage in three years unless, of course, you are expecting a large wage rise/inheritance.

Just my view, of course.

yeah, I see what you are saying. Unfortunately, I dont forsee any big windfalls. But feel I need to get on the property ladder and fast.

Grasping at straws I think.

Can you try a part ownership scheme?

I have friends who have done this and its worked very well for them, and no pressure to pay back or buy outright until its right for them.

Oh I see you have mentioned "govt scheme". The thing is though you and your friend both want such different things - for her its an investment, for you its a home. She may only want to contribute financially to improvements that will make a sound financial return, whereas you may need/want things for taste/comfort/practicality. Also her profiting rather than the govt is better for her, not necessarily for you.

I think 3 years is a very short time really, we live in an area with booming house prices and when BIL and his girlfriend split up they made very little profit in that space of time.
We have had this house 10 years and it is now that we can afford to re-mortgage although the equity has been there for a while.
Like others have said you are both looking for different things in this and it may be worth a look at the part owner things because ypu can stil eventually own the whole house in most cases but over a time that you can afford rather than 3 years down the line having to sell up because your house has not increased enough in value.