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Any financial gurus out there. House buying worry.


Sprackles
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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

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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.

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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.

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