Use LISA for share in property

[sackofspuds]

My two daughters each have LISAs.

My youngest is looking to buy her first flat and will therefore put her LISA funds towards the deposit.

My eldest would also like to use her LISA funds in order to take a share in what her sister buys. This might enable them to buy a small house rather than a flat. My youngest isn't against this idea.

The problem is that my eldest is a student so couldn't get a mortgage and if my youngest adds her to her mortgage it decreases the amount that could be borrowed.

I believe LISAs can be used to purchase a percentage of a property but I also believe the property has to be bought with a mortgage. I suppose the question is whether the mortgage has to be in both their names?

[Gerry557]

Normally all those named on the mortgage are liable hense the student issue.

Can the other get the mortgage amount to cover the house?

I don't know what the rules are for both to use the LISA but one not to be on the mortgage. A mortgage broker might find a way of getting this to work if the numbers work.

[Kantwebefriends]

The problem is that my eldest is a student so couldn't get a mortgage and if my youngest adds her to her mortgage it decreases the amount that could be borrowed.

Ages ago my wife, who was then a student, got a mortgage - with her father agreeing to stand guarantor. Could a mortgage broker find your daughter such a mortgage (if Pa is prepared to gtee it)?

[sackofspuds]

Hi Kantwebefriends

Good idea about the guarantor bit. Fortunately, the idea of them buying together has gone a bit quiet and furthermore it seems my youngest can afford to buy on her own (at a stretch).

I say fortunately because I think my eldest is better off waiting for say a year by which time she won't be a student and will hopefully have a job, then buying with her boyfriend or on her own.

To my mind there was never much of an advantage to her of putting money into her sister's property. It would just tie it up and could be a cause of friction later.