Can I get a mortgage to buy out my sister?

C

Commoncommoner

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Hi All

A complicated one but will try simplify it best i can

Will inherit house with my sister as a 50/50 split and also cash from my aunts will at 50/50, just the two of us

I live in the house with my partner, sister wants the money, we plan to divide the will that i take house and she takes money, Solicitor has said this is possible given wording of will, issue is that house is valued at higher than money therefore i plan to get a mortgage to pay my tax debt and also to bring my sisters cut to 50/50 if possible.

My problem is that the above would be higher than 3.5 times my salary, it would be 4.5 times, now if my partner went with me on the loan we would be ok.

My question is before i go chasing brokers does the above seem likely circumstances that a bank would lend under, the total amount i would need is approx 280k, would it be possible for my partner to go on the loan with me if I’m not approved. Again I’m trying to ascertain feasibility of banks lending under such circumstances.

If not possible house will be sold.

Thanks
 
You want to borrow €280k and your salary is €60k

How much is the house worth? It must be in the order of €700k.

I would suggest that you cannot afford such a house and should sell it and buy something you can afford.

You should not put a house worth €700k in joint names with your partner if she is not contributing anything.

If your relationship splits up, then you would be facing losing a significant share of your wealth.

Brendan
 
Did your aunt live in the house too?

If so, it’s possible that the Dwelling House Exemption applies and there’s no tax to pay.

Would your sister cut you some slack in terms of the money that she’d be owed? i.e. let you pay her on the drip?

What does your partner earn salary-wise?
 
NoRegretsCoyote said:
But this is hardly unique to these circumstances, is it?
Click to expand...

True.

But it looks as if his partner is making no contribution at all towards acquiring the house. And it's his original family home.

And while it's not unique, this issue needs to be stressed on every occasion people buy a house together.

Brendan
 
Hi Commoncommoner,

I'm guessing when you say partner you aren't married as I don't think you could get a mortgage separate to them anyway if you are married?

If you had a good relationship with your sibling maybe between the three of you (or two if excl partner), you could come to some sort of arrangement.

I had a very strong relationship with close family members and came to arrangement where they would take out two personal loans to get me over the line on a property purchase when I was not currently eligible to get a loan. It worked out great for us and I've paid all back but can be very risky business if the relationship is not v strong.




Commoncommoner said:
Hi All

A complicated one but will try simplify it best i can

Will inherit house with my sister as a 50/50 split and also cash from my aunts will at 50/50, just the two of us

I live in the house with my partner, sister wants the money, we plan to divide the will that i take house and she takes money, Solicitor has said this is possible given wording of will, issue is that house is valued at higher than money therefore i plan to get a mortgage to pay my tax debt and also to bring my sisters cut to 50/50 if possible.

My problem is that the above would be higher than 3.5 times my salary, it would be 4.5 times, now if my partner went with me on the loan we would be ok.

My question is before i go chasing brokers does the above seem likely circumstances that a bank would lend under, the total amount i would need is approx 280k, would it be possible for my partner to go on the loan with me if I’m not approved. Again I’m trying to ascertain feasibility of banks lending under such circumstances.

If not possible house will be sold.

Thanks
Click to expand...
 
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