Property Buying Guide
Buying Property with Friends
Buying with other individuals is known as joint ownership or joint equity or co-buying.
Buying property with a friend is becoming increasingly popular as sharing mortgage payements, bills and other expenses can make the difference between getting onto the first rung of the property ladder or not. With regard to family and property, some say that buying property with family can be a better idea - if you buy property with your brother, sister, father or mother you can always appoint a family member as mediator in case of a dispute but you can end up with family 'baggage' getting in the way.
Combining financial muscle means that as a pair or group you can borrow alot more - sometimes up to 3.5 x joint anual salaries. Seek mortgage advice to see how much you can borrow together.
It is because of potential disputes that many have reservations about buying property with friends. Before you buy together you should agree what to do in the event of someone not paying their part of the mortgage, death, wanting a girlfriend or boyfriend to move in, having to move to another area. The last thing anyone wants is to be left having to pay the mortgage on their own or face repossession.
It is for this reason that if you buy with a friend, family member or even a stranger you have met with the purpose of investing together, you should have the right agreements set up. Your local family property law specialist can help you draw up a co-habitation or joint ownership agreement. They can also help you find a mediator in the event of such a dispute.
These issues are covered in depth in our Joint Ownership Guide.
Often confused with joint ownership or buying property with a friend, Shared ownership is owning in conjunction with a housing association or similar. In this instance you pay rent to the co-owner for the share of the property which you do not actually own.
Most useful and most popular pages on this site:
Look for your First Property l Seek First Time Buyer Mortgage Advice l See our Best First Mortgages Comparison Table l Find out about First Time Buyer Mortgages l Find out How to Buy a House l Learn all about The First Time Buyer Mortgage l Shared Ownership