In some cases, a practical way to get on the property ladder as a first time buyer in Newcastle or home mover in Newcastle could be buying a home with a friend or partner. One benefit is that the deposit would be raised quicker and may increase your deposit amount more than if it was from a single income.
As well as this, the costs will be shared, because of there being two incomes. Despite this benefit, it’s key to know that if one defaults, then there is the risk of the other having to be responsible for the full mortgage.
The maximum amount of people that can jointly co-own a property is four. When you jointly co-own a property, you have a legal right to stay in your home unless a court rules otherwise. In the circumstance where one of the parties would like to sell or take out extra borrowing against the property, this is a matter all parties have to consent to unless a court state otherwise.
Civil partnerships or married couples usually prefer joint tenancies. In the unfortunate event that one of the parties passes away, the property will be in possession of the other owner on the mortgage. The law sees joint tenants as one unit, which means you can’t remortgage or sell the property without the agreement of the other owner.
Tenants in common are a more favourable choice for relatives or friends who are buying together. You may jointly own the property, but you do not have to own equal shares. Therefore, you can act individually. This means that you have the right to sell or give away your share of the property. There is a way you can mortgage your share of the property, but it would be difficult to find a lender that will lend in these circumstances.
All borrowers are jointly and severally liable, which is something a mortgage lender will highlight to you. If one of you stops paying your share of the mortgage, then the other(s) will make up the shortfall and pay the full amount.
In the case where a divorce/separation might occur, it’s crucial to understand that all parties are still responsible for any joint financial commitments. It applies even if a person leaves the family home, and this is also the case when the two parties come to an agreement where one person will make all the payments.
It’s best to speak to a specialist mortgage advisor in Newcastle to understand what your options might be. To look into this further, check out our article, “divorce & separation mortgage advice.”
If the consideration of buying a new property in the future should occur, the mortgage payment on the old property would be taken into consideration. In this circumstance, a person must seek out Mortgage Advice in Newcastle. It does depend on how generous the lender is as to how much they will lend, however, our mortgage broker in Newcastle will take this into account when recommending the most appropriate lender to apply for a mortgage agreement in principle.