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ExpatBrit

Advice needed on buying a home in London with family

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Hi, I would appreciate some advice.

I live in the USA and I would like to help my relative buy a house in London preferably in the Bromley area. My relative works as a district nurse. Their rent is about £1,500 a month for a 3 bedder.

I'm looking at a joint mortgage and they would be a key worker.

The problem is I can't get a traditional mortgage in the UK because I don't live there. I was born there and still have a current account.

I've looked into expat mortgages but they will only deal with me, not my relative because there doesn't appear to be any hybrid mortgages out there for residents and non-residents.

The other issue is house prices are falling in London - is it better to wait sometime after Brexit?

 

 

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On 24/06/2018 at 03:00, ExpatBrit said:

Hi, I would appreciate some advice.

I live in the USA and I would like to help my relative buy a house in London preferably in the Bromley area. My relative works as a district nurse. Their rent is about £1,500 a month for a 3 bedder.

I'm looking at a joint mortgage and they would be a key worker.

The problem is I can't get a traditional mortgage in the UK because I don't live there. I was born there and still have a current account.

I've looked into expat mortgages but they will only deal with me, not my relative because there doesn't appear to be any hybrid mortgages out there for residents and non-residents.

The other issue is house prices are falling in London - is it better to wait sometime after Brexit?

 

 

I would say rob a bank and use that as your deposit, but you would probably struggle to get it past the money laundering rules.

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On 24/06/2018 at 01:00, ExpatBrit said:

Hi, I would appreciate some advice.

I live in the USA and I would like to help my relative buy a house in London preferably in the Bromley area. My relative works as a district nurse. Their rent is about £1,500 a month for a 3 bedder.

I'm looking at a joint mortgage and they would be a key worker.

The problem is I can't get a traditional mortgage in the UK because I don't live there. I was born there and still have a current account.

I've looked into expat mortgages but they will only deal with me, not my relative because there doesn't appear to be any hybrid mortgages out there for residents and non-residents.

The other issue is house prices are falling in London - is it better to wait sometime after Brexit?

 

 

Hi ExpatBrit, welcome. If you have your heart set on buying a place, this might not be the board for you, we're all very bearish around here! You have been warned. So here is my contribution - a link to a house sales and rentals site called zoopla showing the trend in the market in the Bromley area https://www.zoopla.co.uk/house-prices/london/bromley/.

All the best, whatever you decide to do.

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4 minutes ago, North London Rent Girl said:

Hi ExpatBrit, welcome. If you have your heart set on buying a place, this might not be the board for you, we're all very bearish around here! You have been warned. So here is my contribution - a link to a house sales and rentals site called zoopla showing the trend in the market in the Bromley area https://www.zoopla.co.uk/house-prices/london/bromley/.

All the best, whatever you decide to do.

I should have expanded on my answer.

Dont! You will be buying at peak and will end up -ve equity. Sit tight.

Ask this for yourself, does it cost me more to rent than a mortgage at current rates?

IF the BOE raises to 2% IR, will I cope? If no, then don't.

And for the love of god, a house is your biggest purchase in your life. Get a proper financial advise before doing anything.

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On 24/06/2018 at 01:00, ExpatBrit said:

Hi, I would appreciate some advice.

I live in the USA and I would like to help my relative buy a house in London preferably in the Bromley area. My relative works as a district nurse. Their rent is about £1,500 a month for a 3 bedder.

I'm looking at a joint mortgage and they would be a key worker.

The problem is I can't get a traditional mortgage in the UK because I don't live there. I was born there and still have a current account.

I've looked into expat mortgages but they will only deal with me, not my relative because there doesn't appear to be any hybrid mortgages out there for residents and non-residents.

The other issue is house prices are falling in London - is it better to wait sometime after Brexit?

 

 

Youll have an issue with clearing both money laundering laws.

And banks are very reluctant to lend to people living outside of the UK. You'd need a specialist lender. Or, more likely, need to buy the place for cash.

The only relative you can take a mortgage out with is a spouse.

 

 

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Thanks for replies and also North London Rent Girl for the link.

It looks like prices are falling in this area. I think I will wait this one out for a year or two.

I did contact a couple of banks that have international lending, Barclays and Lloyds, but although they will consider an expat they don't offer a product for a UK resident who is working and myself. It's one of the other.

 

 

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It does sound like it would be near impossible for you to get a mortgage of the type you describe but if you are looking for a mid-priced house then prices are holding up quite well but certainly not surging ahead  

Flats are very hard to shift at the moment. You might be able to pick up a bargain if you find a forced seller. 

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1 hour ago, ExpatBrit said:

It looks like prices are falling in this area. I think I will wait this one out for a year or two.

You are correct to sit it out for TWO YEARS AT LEAST.  May is spending all the time fence sitting, if she doesn’t succeed it will be another Tory night watchman, or Labour.  HP are headed down, more so with Monetary Tightening — but only baby steps, to date....

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My advice is don't get suckered into believing price falls are mostly due to brexit. If anything brexit has been used as an excuse to mask the real reasons for a big fall and an excuse to keep rates lower for a little while longer.

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Wikipedia: In Old Norse sources, beings described as trolls dwell in isolated rocks, mountains, or caves, live together in small family units, and are rarely helpful to human beings.

I wouldn't buy in London.

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5 hours ago, ExpatBrit said:

Thanks for replies and also North London Rent Girl for the link.

It looks like prices are falling in this area. I think I will wait this one out for a year or two.

I did contact a couple of banks that have international lending, Barclays and Lloyds, but although they will consider an expat they don't offer a product for a UK resident who is working and myself. It's one of the other.

I think you are hosed. 

I was in a similarish situation to yourself (joint mortgage, one salary from abroad in a different currency, the other UK in Sterling). I went with Santander in the end because I could get a 10 year fix at a normal rate. However both of us applicants are living in the UK. I suspect that they won't want to know about someone in your situation.

Your options here would be to either apply for the mortgage yourself and maybe provide a sweetheart deal on the rent, or else such a deposit that your relative could be assessed by themselves (probably nasty tax implications). 

With all that said, I think buying London property at this moment is a crazy idea. 

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9 hours ago, spyguy said:

Youll have an issue with clearing both money laundering laws.

And banks are very reluctant to lend to people living outside of the UK. You'd need a specialist lender. Or, more likely, need to buy the place for cash.

The only relative you can take a mortgage out with is a spouse.

 

 

Not strictly true - just got a mortgage for my daughter. Because she doesn’t  Earn enough she did it with my wife. It wasn’t a special parent and child mortgage just a normal mortgage 

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5 hours ago, Maynardgravy said:

My advice is don't get suckered into believing price falls are mostly due to brexit. If anything brexit has been used as an excuse to mask the real reasons for a big fall and an excuse to keep rates lower for a little while longer.

Spot on it has been coming for ages 

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5 hours ago, GregBowman said:

Not strictly true - just got a mortgage for my daughter. Because she doesn’t  Earn enough she did it with my wife. It wasn’t a special parent and child mortgage just a normal mortgage 

Yeah, you can take mortgages out with friends. The problem you will have is, I assume you earn in usd and it wont be your main residence. So in my opinion you'd lie about the latter to have any chance at all. And as far as I was aware all key worker schemes are for discounted rent - not mortgage rates/houses, but as I'm not one, I've not really looked into this. 

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13 hours ago, Maynardgravy said:

My advice is don't get suckered into believing price falls are mostly due to brexit. If anything brexit has been used as an excuse to mask the real reasons for a big fall and an excuse to keep rates lower for a little while longer.

To be honest I think Mark Carney would use England success/failure at the world cup as a reason to keep rates lower, if he could think of a decent excuse.

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On 24/06/2018 at 01:00, ExpatBrit said:

Hi, I would appreciate some advice.

I live in the USA and I would like to help my relative buy a house in London preferably in the Bromley area. My relative works as a district nurse. Their rent is about £1,500 a month for a 3 bedder.

I'm looking at a joint mortgage and they would be a key worker.

The problem is I can't get a traditional mortgage in the UK because I don't live there. I was born there and still have a current account.

I've looked into expat mortgages but they will only deal with me, not my relative because there doesn't appear to be any hybrid mortgages out there for residents and non-residents.

The other issue is house prices are falling in London - is it better to wait sometime after Brexit?

 

 

Would the mortgage be cheaper than the rent?  That is a key point.

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On 25/06/2018 at 16:44, North London Rent Girl said:

Hi ExpatBrit, welcome. If you have your heart set on buying a place, this might not be the board for you, we're all very bearish around here! You have been warned. So here is my contribution - a link to a house sales and rentals site called zoopla showing the trend in the market in the Bromley area https://www.zoopla.co.uk/house-prices/london/bromley/.

All the best, whatever you decide to do.

5years +126k,

1 year -7k.

 

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20 hours ago, GregBowman said:

Not strictly true - just got a mortgage for my daughter. Because she doesn’t  Earn enough she did it with my wife. It wasn’t a special parent and child mortgage just a normal mortgage 

Surprised you're buying into this market. Don't see any downside risk at the moment?

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3 hours ago, darkmarket said:

Surprised you're buying into this market. Don't see any downside risk at the moment?

I do but ... wide search area and daughter itching for her independence . The saving on rent would be equivalent to a 30% drop over 5 years 

Will negotiate aggressively as always and it will be a bit of a wreck 

in truth even if we lost a bit better then her paying rent to some landlord 

Edited by GregBowman

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3 hours ago, GregBowman said:

I do but ... wide search area and daughter itching for her independence . The saving on rent would be equivalent to a 30% drop over 5 years 

 Will negotiate aggressively as always and it will be a bit of a wreck 

in truth even if we lost a bit better then her paying rent to some landlord 

I understand the need for independence, although having mummy or daddy's name on the mortgage undermines it somewhat. The "paying a landlord" argument less so, this isn't going to take five years to play out.

If it's all signed though, I can only say congratulations.

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On 26/06/2018 at 03:00, GregBowman said:

Not strictly true - just got a mortgage for my daughter. Because she doesn’t  Earn enough she did it with my wife. It wasn’t a special parent and child mortgage just a normal mortgage 

Your daughter is very fortunate to have a bomad, having children means treating them all equally or not at all IMO. The sad part of all this is only a few years ago all sons and daughters could have purchased on their own independently without help, from their own hard work, with own savings bought in their own name......how well you do is more about who you are born to, not how hard you work.......😉

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1 hour ago, winkie said:

Your daughter is very fortunate to have a bomad, having children means treating them all equally or not at all IMO. The sad part of all this is only a few years ago all sons and daughters could have purchased on their own independently without help, from their own hard work, with own savings bought in their own name......how well you do is more about who you are born to, not how hard you work.......😉

She is and is respectful of that, it is sad no doubt about it - but...our contribution is small in relation to our means, key thing was keeping my wife off the current mortgage so we could get cheap money - a decision millions of couples could make 

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2 hours ago, darkmarket said:

I understand the need for independence, although having mummy or daddy's name on the mortgage undermines it somewhat. The "paying a landlord" argument less so, this isn't going to take five years to play out.

If it's all signed though, I can only say congratulations.

It’s only paperwork to our family - it’s actually for both our children - my son can’t be on deeds for tax reasons as he lives abroad - not sure it undermines her independence - we bounced back twice to Mum and Dad in the early 90’s with kids in tow

We are an immigrant family (Well half Dad) so see ourselves as interlinked, as a business man I use other people’s money wherever I can especially cheap money

Your right about longer than five years but desirable areas won’t crash they will certainly decline which we have factored in

 

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2 hours ago, GregBowman said:

We are an immigrant family (Well half Dad) so see ourselves as interlinked, as a business man I use other people’s money wherever I can especially cheap money

Your right about longer than five years but desirable areas won’t crash they will certainly decline which we have factored in

I'd still defer the gratification by a year and try to go it alone, but each to their own, a compelling argument in any case.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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