In the current market it can be difficult to get a foot on the property ladder if you’re a first time buyer. Getting a mortgage is the first difficult step. Due to this more and more people are now considering joint ownership with either friends or a family member.
Like buying with a partner Tiffen & Co can’t stress enough how essential it is to look into every situation to make sure your move as stress free as possible. Nobody wants to think of the worst case scenario, however this is sometimes the most sensible option when making a step as big as this.
The NAEA (National association of estate agents) recommend the following when buying a house with friends or a member of your family.
Bank Accounts: Typically opening a joint bank account is the easiest way to ensure all payments, whether these be utility or mortgage, are met properly. Ensuring that all parties have access to the bank account ensures that transactions are handled transparently and don’t fall upon one person to hold all the responsibility.
Draw up and inventory: To avoid any nasty arguments draw up an inventory of non-shared items at the start of the residential period. Doing this ensures that there is no confusion when the time comes to move out over who owns what. This is also beneficial if one party moves out.
Consider the worst: Although buying a new home should be a positive experience, especially with a friend or family member, things can go wrong. One of the perks of buying with a friend or family member is that there should be a high level of trust, but that shouldn’t be to the detriment of legalities. Checking with lawyers about a co-ownership contract and agreeing in advance what will happen if one owner’s circumstances change will give both parties the peace of mind they need in order to fully enjoy the benefits of a joint mortgage.
Here at Tiffen & Co Estate Agents we understand how the article above can be daunting and can also create more questions. If this is the case, why don’t you visit us in one of the Tiffen & Co estate agents? We have branches in Carlisle, Whitehaven and Cockermouth.
Alternatively visit the website below http://www.naea.co.uk/info-guides/property-guides/property-buying-guide/buying-with-a-partner/