Anonymous
Anonymous asked in Business & FinanceRenting & Real Estate · 1 month ago

Can I put my share of a house on a BTL mortgage and rent my share to the co-owner?

I am thinking of buying a bungalow with my grandparents. They have 200,000 equity and I would apply for a mortgage of 45,000 pound. However, if I ever wanted to move out and buy a place on my own would I be able to put my share on a buy to let basis and let my share to them therefore allowing me to buy elsewhere and keep my investment in the bungalow with them?

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  • 1 month ago

    I don't know much about (or really anything) English banking laws, but nonetheless I can't imagine a bank allowing that with just your share.  Bank don't like lending on partial shares of anything, unless its a multi million dollar asset, because they can't really be sure what the other owner might do with their share which could severly impact the value of your share.

    So, you probably couldn't do it in the way you present it in your question but what you almost certainly could do is simply get a new mortgage for 1/3 of the value of the whole thing, or whatever percent of the place you would own (with your parnets on the mortgage) and just have the agreement with your parents that either this is your mortgage that you pay back, or if they would prefer to buy you out then they get the mortgage themselves and now own the place themselves (you deed it to them - they are buying you out of your shre) but you get the money from this mortgage to get your own place.Put another way, I really doubt you can do it the way you put forth in the question but with your parents cooperation you should be able to get the money for the next place by simply structuring the deal a different way.

    • Maxi
      Lv 7
      4 weeks agoReport

      It is the only mortgage the rest cash deposit, the whole property is taken into consideration when mortgaged.not a share of it grandparent signing as agreeing, if the mortgage is BTL he would have to charge rent to his grandarents & register as a landlord & HMRC & extra 3% in Stamp Duty on 2nd prop

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  • Maxi
    Lv 7
    1 month ago

    Read about BTL mortgages which will answer your question https://www.moneyadviceservice.org.uk/en/articles/...

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