Mungler Posted July 26, 2017 Report Share Posted July 26, 2017 Just out of pure nosiness how much was the gaff and how many bedrooms and what was the monthly rent? Quote Link to comment Share on other sites More sharing options...
Sprackles Posted July 26, 2017 Author Report Share Posted July 26, 2017 2 bedroom terraced. Rent 450 per month. Valuation 80000 as is but 120000 when updated. Quote Link to comment Share on other sites More sharing options...
BrowningB525 Posted July 26, 2017 Report Share Posted July 26, 2017 2 bedroom terraced. Rent 450 per month. Valuation 80000 as is but 120000 when updated. Where abouts? Quote Link to comment Share on other sites More sharing options...
Sprackles Posted July 26, 2017 Author Report Share Posted July 26, 2017 Cleethorpes Quote Link to comment Share on other sites More sharing options...
AVB Posted July 27, 2017 Report Share Posted July 27, 2017 2 bedroom terraced. Rent 450 per month. Valuation 80000 as is but 120000 when updated. Your numbers don't stack up. Assuming 10% deposit then that leaves £72K to mortgage. £72K over 10 years at 1.8% (you might be able to get a bit better) is £650/month. So your brother would need to pay you £650/month to cover the mortgage payments not £450 Quote Link to comment Share on other sites More sharing options...
Sprackles Posted July 27, 2017 Author Report Share Posted July 27, 2017 Deposit would have been 15 percent. 450 is the rent he pays now and 625 would be the repayment Quote Link to comment Share on other sites More sharing options...
BrowningB525 Posted July 27, 2017 Report Share Posted July 27, 2017 Deposit would have been 15 percent. 450 is the rent he pays now and 625 would be the repayment You've dodged a bullet. I know it's your brother. But mortgaging that would have been difficult. The rent to price ratio would struggle to pass stress tests. Quote Link to comment Share on other sites More sharing options...
NorfolkAYA Posted July 27, 2017 Report Share Posted July 27, 2017 Deposit would have been 15 percent. 450 is the rent he pays now and 625 would be the repayment So you would be loosing £175 a month? I know he's your brother but that's a bit much Quote Link to comment Share on other sites More sharing options...
Sprackles Posted July 27, 2017 Author Report Share Posted July 27, 2017 No, He would have been paying it all as he would ultimately have owned the house once the mortgage had ended. Plan was to turn it over at the end but capital gains tax and other rules meant i would be financially disadvantaged and at risk if for any reason he couldn't pay. Have now called it off for those reasons. Quote Link to comment Share on other sites More sharing options...
JDog Posted July 27, 2017 Report Share Posted July 27, 2017 A wise decision Sprackles methinks. Quote Link to comment Share on other sites More sharing options...
Lloyd90 Posted July 27, 2017 Report Share Posted July 27, 2017 Hope you've not now fallen out with your brother. Would have been much worse if there was an issue further down the line though. Why again could your brother not get the mortgage himself if he is able to make the full payment himself? Quote Link to comment Share on other sites More sharing options...
NorfolkAYA Posted July 27, 2017 Report Share Posted July 27, 2017 Have you not thought about lending your brother the amount for the deposit to buy it himself? Quote Link to comment Share on other sites More sharing options...
Sprackles Posted July 27, 2017 Author Report Share Posted July 27, 2017 He has the deposit himself however a messy divorce some years ago meant he sold his home to settle the split. Sold to an acquaintance on the understanding he could rent but also the agreement woukd only last so long before the house was sold but he would have first refusal. That time is now up. Because of the fall out from the divorce and money issues plus self employment he can't get a mortgage just yet. Another couple of years maybe but he doesn't have that time. Quote Link to comment Share on other sites More sharing options...
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