Home Add to Favorite Contact Submit  
             23 January, 2021
 

    
Category:  Articles » Real Estate » Home Buyers

 

Co-Buying - Unconventional, But A Great Solution

Popularity:
         Views: 4602
2007-05-05 10:15:11     
Article by James Quinton

It may not be an ideal solution, but for some the unconventional alternative of co-buying a property and sharing the cost, sometimes with a stranger, is the only solution currently available to get onto the property ladder. But it is essential to know the legal implications of entering in to such a deal. There should be no difference between buying with a stranger rather than buying with a friend, or friends, as the state of affairs have to be agreed upfront with all parties concerned being aware of the terms and conditions from the outset. Remember that both parties are jointly and severally responsible for the mortgage and it is a legally binding contract. The only way to get out of the legal obligation is to sell the property or transfer the mortgage into a single name. Neither of these options are quick and the second one may not be possible.

If you are thinking about entering into a co-buying relationship you may find the following advice useful. It is advisable to draw up a contract, either with a solicitor or you can do it yourselves. Discuss in detail what you are looking to gain from the arrangement, how long you are looking to own the property for and what your plans for the future are. When starting the house buying process it is important to agree on how the costs; legal fees, mortgage arrangement fees and survey cost will be split, this will hopefully reduce stress and save time in the long run. You will also need a Declaration, or Deed of Trust to co-buy. The document is signed when contracts are exchanged. It sets out the legal rights on the property; the percentage each buyer owns on the property and how the costs of ownership are split and how the relationship will end.

When starting your search for a home using an online property search engine can be effective and time efficient way of finding the types of property that you'd be interested in and ultimately viewing.

Keep in mind your budget from the outset, and of course, remember to consult with a mortgage broker or lender to discover how much you can afford to borrow and repay, they'll also be able to find you the best possible mortgage deal that suits your needs. When discussing your budget you'll need to be clear if they'll be a deposit involved and how much you and your co-buyers can afford to contribute. If there is no deposit, you'll still be able to buy, but will need to seek out a 100% mortgage deal, or being 'shared buyers', some mortgage lenders now offer specific 'multiple buyers' or 'shared ownership' mortgages.

Co-buying is becoming increasingly popular for young first-time buyers eager to get on the property ladder but is also being used by private investors looking to start a buy-to-let portfolio and overseas buyers looking for a holiday home abroad.

James Quinton is a writer based in the UK. He has had articles published worldwide. Compare mortgage rates online.

Specialized in: Mortgages - Mortgage Calculator
URL: http://www.moneysupermarket.com
Print article      Bookmark this page
Related Articles 
How to sell a house to acquire fund for your retirement (Popularity: ): A number of individuals who are retired or are near retirement view their properties as a major spring of funds for their retirement & call them as nest eggs. There are 2 principal methods of employing one's house for this intention; either by the means of a reverse mortgage program, or by sell my house fast. In this editorial, we will discuss on How to sell a house to acquire ...
How to Make a Low Ball Offer (Popularity: ): According to Marketwatch.com, Home sellers are not automatically turning down offers that come in far below their asking price these days as housing prices cool and the inventory of homes for sale remain elevated in many markets. However, whenever an aggressive offer is attempted, there is always an inherent risk in going too low. There is a real danger the offer will insult a seller to the point that they ...
How to Make a Low Ball Offer (Popularity: ): According to Marketwatch.com, Home sellers are not automatically turning down offers that come in far below their asking price these days as housing prices cool and the inventory of homes for sale remain elevated in many markets. However, whenever an aggressive offer is attempted, there is always an inherent risk in going too low. There is a real danger the offer will insult a seller to the point that they ...
The Virtual Home Buyer (Popularity: ): As a Professional Home Stager I often tell clients that buyers today are in a different league. With access to the internet, virtual tours, digital photos and new types of on-line real estate shows that are becoming available, a savvy home buyer does not need to leave the comfort of their home to decide whether or not to see a property listed on the internet.Often, time strapped buyers will make ...
Mold and Eastern U.S. Homes (Popularity: ): There are certain areas of this country where the possibility of mold growth is more likely to happen than in others. Homes in places like the Southern and Western states which have a dryer climate typically do not have trouble with mold which can only thrive in a moist environment. It is this reason that homes in the North-East, where the climate is damper and has more rain and snow ...


Related Business 
Unconventional Tourist (Popularity: ): Unconventional Tourists’s book Nepal: A Tourist’s Manual depicts information about unconventional tourism in Nepal like how to avoid culture shock and how to get by everyday situation travelers face in Nepal. Nobody told me Nepal was so incredible. Like so many others, I came here on India visa issues. I noticed the tourists, no matter whether young or old, seasoned traveler or novice, we all had one thing in common.
Telescope Buying Guide (Popularity: ): When buying a telescope it’s easy to get information overload. You need to decide which type of telescope is right for you, how much you should expect to pay and the best places to buy. This site gives a great introduction to buying a telescope for beginners.
Ultra Motorcycles (Popularity: ): Unconventional motorcycles for unconventional people.
The Charities Buying Group (Popularity: ): The Charities Buying Group provides FREE dedicated buying advice and purchasing services to the third sector, offering a wide range of buying agreements that will help you make better use of your money by tapping into our buying power.
Velvet Mule Menswear (Popularity: ): We are an independent Men's Fashionwear company based in Birmingham UK, with over 15 years experience in men's fashion retail sales, management, merchandising and buying. Over the years we have built up a large network of suppliers and gained great knowledge of the brands and products we have come to know and love, in doing so we have also created huge buying power which has given us the opportunity to ...
NewBuyer Buying Guides (Popularity: ): Buying portals of rated links in objective, easy to navigate buying guides to help buyers make confident buying decisions
Business For Sale (Popularity: ): Buying a business is an exciting and challenging endeavour. Those considering buying a business must do a great deal of research to make sure that they are fully aware of all of the businesses for sale on the market before proceeding to do due diligence on the shortlist of businesses deemed most attractive. businessforsale-canada.ca provides a single location that those considering buying a business can come to in order to ...
Smart Solutions Realty, LLC. (Popularity: ): Smart Solutions Realty is an established real estate company located in Winter Garden. We offer complete solution for buying and selling residential or commercial property with great customer satisfaction. We are perfect for rental property, property to rent, homes for rent, property rentals in Florida.
Trade A Car (Popularity: ): Our mission at tradeacar is to be your ultimate online solution for buying and selling new, certified and used cars. Our site is designed to give you more control of the buying process and make finding a vehicle easier than ever before. Tradeacar lets you research and compare new, certified and used cars by searching for body type, mileage, price and numerous other criteria.
Rent A Desk (Popularity: ): Rent A Desk is a company which is your complete office furniture solution. From rentals to buying, they even offer you the ability of rent to own. This is you perfect office project solution from short term office projects to long term projects, Rent A Desk offers the solution for you.