Combining ours (DH and me) and DD's finances for a house

[StillMedusa]

Currently we have 6 adults living in a 3 1/2 bed house (we created a 4th bedroom but it really is a half..tiny)
Dh and me, DD2 and her partner, Ds1 and DS2. DS1 is waiting for a visa to go to Oz to his fiancee, but DS2 has autism and will live with us forever. We are cramped!

A house has come up for sale a few hundred yards away... three bed but with a two story annex with it's own lounge,kitchen bathroom and huge bedroom... perfect for DD2 and her partner.

They can't afford to buy here (Oxfordshire) even tho they are saving as much as possible living with us.

If we combined our finances and DD2's we could buy the property with the same mortgage we have now... essentially she would need to get a mortgage for 125k and we would do the rest. Is this legally possible and is it horrifically complicated to arrange?

It even has parking for all our cars and a big garden (ours is small and we love gardening... I WANT it!)

Go to a locally recommended financial advisor

Mmm, what if they want to move and upsize - they'll need their money back. Potentially legal problems if they don't pay or split up? I'd talk through the pitfalls with a financial adviser first.

Lightsabre oh totally... I would foresee them living with us (in their annex) for quite a while as neither want kids yet (DD2 is 25). Potentially the annex could be sold separately, or we would move my mother in as she wants to move to us in 5 years time (and will have a property to sell which is worth much more than the annex 's share)

My DD2 would take on the mortgage herself (she is in a professional career) rather than with her partner..just in case. She is very sensible !

If you did this and in the future your DD wanted to buy a place independently with a partner/husband they wouldn't get the stamp duty advantages available to first time buyers as she wouldn't qualify.

The major issue will be how your DD extricates herself from the joint mortgage with you in future. You'd need to discuss all the options, agree and document it in a legal agreement.

All very valid points..thankyou!

What proportion would their contribution be to the overall mortgage? Would they be happy having the smaller part? Could you afford it without her?

I wouldn't be doing this tbh.

I'd also see a solicitor to work out pros and cons legally but your daughter sounds eminently sensible. How does her partner feel about the suggestion?

Best of luck - would solve a lot of issues now and in the future.

I don't think you can just sell the annex if your daughter decides to move on?

And would your mother want to pay for the annex if she were to live with you? My MiL considered moving into our annex but wasn't prepared to contribute at all as she wanted to keep her money in case she changed her mind a year later and wanted to move on.

I can see why you'd want to move to the other house and h go could suit your family. I'm sure you'll Bec able to buy it all together as well. However, it does sound like a recipe for a family feud.

If you're feeling too cramped, I'd probably move DD and her partner on.

Frankly, I think you'll be very lucky to find a mortgage lender who'd be interested to lend you/your DD, the money in this complicated arrangement.

Does the annex have a separate entrance?

I think this may be possible, but you would need a specialist mortgage provider, and you may not get the same rates as high-street mortgages, so it could be more expensive than you think.

Ultimately, whatever arrangement you can come up with, you need to have a plan for if/when there's no-one willing to live in the annex and pay for it. What would you do then? Could you rent it out (if it doesn't have its own entrance, that would be a problem)? You'd then need another specialist mortgage to cover that scenario.

It isn't impossible - I know people who have done this - but it is hard. Generally, the finances are easier if one person/group has the cash to pay for their section, rather than trying to get separate mortgages. You may need to get one mortgage, with DD on it, and some good legal documents to cover any potential problems.

Tbh I wouldn't be relying on my child to make this happen. I would encourage her to spread her wings with her partner and stay independent.

Also, make sure you know what happens if you both die. Morbid, but true. What happens to DS2 if he lives with you but his siblings want to sell? How would DD’s share be worked out and how would that impact her brothers? Specifically DS2 (because she doesn’t want to be in a position where she can’t sell her share because he is resident and won’t / can’t leave).

If necessary could you and dh borrow the entirety of the mortgage for the new place, or could you not borrow it without dds wage?

Another one to consider is who would cover the cost of repairs and upgrades in the main house and the annex and in what proportion if all of you are legal owners.

The points above are valid but make it seem harder than it needs to be.

You can all get a mortgage together and you and your husband and daughter would be on the deeds.

You would need to agree what price each person is paying and then calculate accordingly, each persons percentage proportion.
You would draw up a deed variation notice about which share each person owns and about any deposit put in.

You would tell your daughter to make sure that her boyfriend pays her rent and his share of the bills but never towards the mortgage, so he can never gain a beneficial interest in her property.

You decide how repairs will be paid, either in your percentage amounts as to each person's ownership or you pay for the main house and your daughter for the annex or a combination of both, ie to cover drains, the roof and shared parts.

When you mother wants to move in, then you daughter can sell her part to your mother and the same as above regarding price paid and repairs will apply.

You make sure you do a will that covers as many eventualities as possible and leave an equal share to your children. Your daughter and mother would also do wills.

You all get legal advice where required.

But it's not that hard as friends and siblings and family members do buy together all the time.

You are also the only one on this thread who knows about your own relationships and characters and whether this would work for the personalities involved.

Factor in all of the buying costs (SDLT, land reg, legals, removals, estate agents) and the down the line “buying out”’costs (more SDLT, legals, any uplift in value) if you are assuming that DD2 will move on.

Could you legally let out the annex if your DD2 moves out before DM moves in / or if your DM chooses not to move in. Would the annex work for DS2 long term - or for a career?

Does this impact your DS1 - would he see you creating an advantage for DD2 but not him.

Do you have siblings - would all of your DM money be coming to the annex? Would there be a need to pay out a sibling after her death?

Will the pressure be better once DS1 moves on? Is the DD2 DP putting pressure on your home - if so can he move out temporarily?

With all of the sunk / lost costs listed above just to move - could you use this to build an annex / extension / loft conversion in your current home?

It's legally possible and my DM and I did it ourselves. Depends what you'd want to do when your DD decides to move on.

Can dd move out by doing help to buy or shared ownership ?

Could dm buy in instead now instead of waiting.... as planning to anyway?

Then presumably it s easier down the line as inheritance etc

I didn't want a child at 23 but it happened.

So I wouldn't count on her not having kids because it COULD happen

She'd no longer be entitled to no stamp duty as first time buyer either