Hi!

Cutting a long story very short; we'd like to buy 80% (£200k) of a
property, with the current owner retaining 20% (£50k) share.

We have £70k cash to put down but will any mortgage provider entertain
the idea of lending us £130k in this situation where current vendor
retains an interest in the property?

Thanks,

Steve

steveharman AT fastmail DOT fm wrote:

> Cutting a long story very short; we'd like to buy 80% (£200k) of a
> property, with the current owner retaining 20% (£50k) share.
> 
> We have £70k cash to put down but will any mortgage provider entertain
> the idea of lending us £130k in this situation where current vendor
> retains an interest in the property?

In principle yes, but you can't mortgage a part of a property, so it
would need to be a joint mortgage whith you and the current owner.

In practice such an unorthodox arrangement may well make lenders
(who are in any case a bit nervous these days) tend towards erring
on the side of prudence and to decline, despite it being only a
52% loan, unless they like the sound of your long story.

On 6 Oct, 15:08, steveharman AT fastmail DOT fm
 wrote:
> Hi!
>
> Cutting a long story very short; we'd like to buy 80% (£200k) of a
> property, with the current owner retaining 20% (£50k) share.
>
> We have £70k cash to put down but will any mortgage provider entertain
> the idea of lending us £130k in this situation where current vendor
> retains an interest in the property?

It is possible. You can buy a tranche of a property.

  http://www.onelook.com/?w=tranche&ls=a

as I have in Scotland. There may be a different term in England and
Wales. I suspect that as long as the mortgage lender has first call on
the amount insured the lender will be happy.

--
James

On Mon, 6 Oct 2008 07:08:09 -0700 (PDT), steveharman AT fastmail DOT
fm  wrote:

>Hi!
>
>Cutting a long story very short; we'd like to buy 80% (£200k) of a
>property, with the current owner retaining 20% (£50k) share.
>
>We have £70k cash to put down but will any mortgage provider entertain
>the idea of lending us £130k in this situation where current vendor
>retains an interest in the property?
>
>Thanks,
>
>Steve
>
>
>


Why? Just out of pure nosiness. 
-- 
http://www.freedeliveryuk.co.uk
http://www.holidayunder100.co.uk