buying property 4 people

HI there

I have found a large house that me and my wife would like to buy with another couple. Will banks entertain this ?

Is this possible ?

Thanks
Billy

Sure just don't tell the banks...................pay with cash!!!

Hi Landlord,

But what if a mortgage is required ? by all parties

2 separate couples ...

Thanks,
Billy

IMO, it is not a good idea. The most troublesome loans are partnership loans and would lead to great friends falling out if things go wrong, as they sometimes will.

Just be fully aware of this, it is not nice to see great friends fall out over financial or property issues.
Bank's will not be jumping up and down about the idea either due to the above possible issues arising.

Actually it would be me and my partner and my sister and her partner..
we have lived together in similar circumstances for years so wouldent be a problem

just wondering if the banks would allow 2 separate joint mortgages on the same house ?

thanks again

BillyPiper said:

just wondering if the banks would allow 2 separate joint mortgages on the same house ?

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It would have to be one mortgage with four people all named on it. In theory it's possible, but as Commercial said you might find a lot of banks unwilling to do it simply because it's extra hassle for them for no extra gain. The only way you'll find out is to ring around and ask them.

I'd say if the initial amount put forward for the purchase was large enough, there really shouldn't be a problem. Saying all this, there is not still a fluid banking system in this country.

BillyPiper said:

we have lived together in similar circumstances for years so wouldn't be a problem

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Well if you do get this mortgage I hope one of the 4 of you aren't on AAM in 3 years time, with one of you in Australia, one of you out of a job, one of you Irish bankrupt and one of you being told you're fully liable for the entire debt.

What's the logic of two couple buying a house together? Are any of you planning on having children.....

Sounds a bit like The General to me. What happens in the future if kids arrive, etc. Might seem like a fine idea now but not in the future. I know of plenty of "friends" who are no longer so due to buying a house together.

In general this type of transaction should be avoided. I'm assuming the request relates to an investment property! If it relates to a proposal for a shared PDH no bank will entertain it as a borrowing proposal due to the inherinet risks and the restrictions imposed by Family protection law. In reality as previous posters have advised, it would be an extremely high risk strategy as if the parties fell out or financial circumstances changed any exit would be at significant cost!

What happens when one of the couples splits up?

I can't comment on the financial/banks/mortgage aspect (which I realise is what you're actually asking about) but would definitely also advise you to make sure you have a very solid contract in place between all four individuals as to who is responsible for what and what happens in the case that one person (or more) leaves/gets sick/can't work/can't contribute to mortgage/dies etc., etc., etc. If you're not already familiar with them, please do take the time to read through all the threads of situations where friends or couples bought houses together and one isn't in the position to pay the mortgage anymore - there are so many variations on the theme and so many situations that you'd never have thought would come up.