Pros and Cons of Mortgage Cost Sharing
Tendency of sharing resources and obtain a joint mortgage with a friend or friends is becoming increasingly popular, particularly in regions with elevated house prices, or the first buyer who can not have enough money to acquire a house on their own.
Pros of Obtaining a Joint Mortgage
Acquiring property for first-time buyers is possible, if paying is not the problem, or he has succeeded to mortgage home loans.
It is possible to obtain a bigger deposit, which reduces the cost of mortgage.
Renting an apartment or house is becoming more expensive every year; it makes sense to make that investment for the upcoming time.
It may be possible to purchase from the other party / parties in the future if they agree, when home loan mortgages are available to you or you have additional money.
Cons of Obtaining a Joint Mortgage
It may seem at first a great idea to move with a best friend, or two, but if the relationship sours, or change, it may alter the whole system into a nightmare.
Co-owners may become jobless or incapable to pay the mortgage payments
Tips to Conclude a Joint or Group Mortgage Effectively
Constantly obtain legal advice and regardless of how close your relationship is with your partner, a legal document putting forward all the conditions, mortgage costs, etc. should be clearly specified for each party to understand and sign.
Prepare a deed of trust with power of sale. This means that the sale of property can not be blocked by one party, if there is a dispute or other party goes away without a trace.
Have an agreement or a clause drafted by a lawyer who will put dealings in place if the affiliation is suspended.
Settle on whether the accord will be for joint tenant (the asset is owned 50/50 and then goes automatically to one if the other dies) or tenants in common (each with their own share, If a person bringing the bigger income, he will take the larger share of any gain or losses).
Always seek for mortgage tips from a reputed lawyer; it will help you a lot.