Tips for those buying homes with friends or family
With first-time buyers finding it increasingly difficult to get on the housing ladder, buying a home with friends or family members may be an attractive way for many to spread the cost.
However, the National Association of Estate Agents (NAEA) has advised that such arrangements can present a number of potential hazards.
It says there are a number of things that people should consider in advance before buying a home together.
This includes consulting lawyers about a co-ownership contract and agreeing in advance what will happen if one owner’s circumstances change, as well as drawing up an inventory of non-shared items to ensure there is no confusion about which items belong to whom.
The organisation also advises that there are a number of mortgages designed specifically for joint purchases.
This makes it is possible to attain a mortgage of higher value, due to the increase in income afforded by applying with a joint wage.
The advice comes the same week as a survey by HSBC revealed that over 80 per cent of non-homeowners aspire to buy a house, but less than a quarter of these expect to be able to purchase within the next five years.
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