Any experience of siblings or friends buying jointly to save on rent - get on the property market?

[Lanzar]

They would be mid 20s and think would commit to 5 years (is this long enough?). They would live there but if one had to move out would accept responsibilty for paying mortgage and/or managing a lodger (chosen by the friend or sibling remaining in property) or both would move and let whole property (would need to check mortgage criteria). Would need to agree to no of nights any partner stays over etc

Thinks thats roughly the logistics but wonder if anyone can see any other issues that need to be considered or have experience of this?

Disaster of epic proportion waiting to happen

My oldest bought at 23, his brother rents a room from him at much lower than market valu. It's all good, works for them both. But crucially, only one of them owns it. It's his responsibility to pay the mortgage, it's his choice whether to rent the room and so on.

A friend did this. Her brother buggered off travelling and didn't pay his share of the mortgage. Then he said her paying all the of mortgage equated to her pay him rent to have sole use of the property. And then she ended up having to buy him out at 50% of the equity. Really tainted their relationship. Try to avoid with siblings. Friends far easier to have proper contractual terms covering such eventualities. Family harder and even her dad said it was only fair that she paid all the mortgage!!

Yes my friends did this. Brothers and their wives, signed an agreement that house needed to be owned for 5 years before sale. 5 bedroom house with flatmates. Sold after 5 years and each doubled the money they put in.

Could they each buy their own homes and each get a lodger? £7.5k tax free income a year, which is taken into account by the lender, so they can borrow more?
www.bathbuildingsociety.co.uk/mortgages/browse-mortgages-by-product-type/rent-a-room/

This was an easy way to get on the ladder in the eighties. Friend and I bought an "apartment"... (bedsit!) For 30k. Shared for a year (curtain between beds - no visitors... ever... , painted it, new carpets, sold it on for 20k more than we paid. Next was a 2 bed ... etc.
"Ladder" doesn't really exist now, so don't think it would gain them much. Half of bog all equity after expenses is still bog all, so how would either ever afford their own place.

Five years is a long commitment, I know marriages that haven't lasted that long!

I know someone who has bought an (enormous) house with (I think) 4 other families and relatives.15 of them in total I think.

I hope it works out for all their sakes, the potential ramifications if it doesn't are the stuff of nightmares.

As previous poster said, it was very common in the eighties. I bought with a friend in a major city. It was very straightforward. We both paid the same deposit and split the mortgage equally. We had an agreement that we would continue the arrangement for a mininimum of two years at which point we would sell or, by mutual agreement, continue for another set period. I think that was important as the expectations were very clear.

During that period we also had a joint 'house' account into which we paid an agreed amount for the mortgage and other shared expenses. Other than that, it just takes the same give and take of sharing a rental.

It worked quite nicely as at the two year stage, we had both just reached a point when we were ready to move onto new stages of our lives.

Yes that would be a nightmare scenario - not just for the finances but for long term family harmony. What a shame.

I am also an 80's child - so probably where my idea came from...I knew 4 of my fellow medical students bought a house together in 2nd year £30k each and sold it 4 years later.

Thats impressive. There's always the complication with partners - new, existing or departing to factor in so at least they were married.

I have friends who have done it they got solicitors to draw up contracts for all different circumstances

I bought with a friend (also in the 80s; no way anyone could afford a mortgage alone then!). We’d shared a tiny rented flat for a few years so knew we got on and had an agreement that if one of us wanted to sell within two years then that person would take the financial hit. We actually stayed about five or six years and did okay on it even though we sold at a pretty bad time.