Island Life Magazine Ltd January/February 2006 | Page 57

PROPERTY FEATURE
The buyer will then be able to buy out the share as funds allow,
either in whole or by staged payments.

We simply have no funds for the deposit, but we
can easily afford the mortgage payments.
If you do not have a deposit, then despair not, you can still
purchase a property. Some mortgage companies will lend a 100% of
the purchase price, although you need to be aware that this comes
at a slightly increased interest rate, normally between 0.25% and
0.5% higher than the norm.

The Strand, Ryde
Tel: [phone]
-Immaculately presented
-one bedroom
-fitted kitchen
-close to town centre
-chain free
Price £95,000

Ryde
There are also some lenders who will put up as much as 125% of the
property value. The purpose of this being that the homebuyer can
also pay off any other borrowings such as car loans and credit cards
that they may have. These type of payments can be a major drain
on your monthly finances, and by paying them off, it releases more
monthly income for the mortgage.

I have some friends who are willing to invest with
me and buy a property..
Because first time property prices in the UK are now so high, it’s
quite common for a group of two or three friends to get together
and purchase a property. In some ways this is a good idea, although
it could get messy, especially if you fall out with one another. If
this happens there are three options open to you: buy out the other
party’s share in the property, or if this cannot be achieved, sell the
property and split the funds, or retain the property and rent it out.
This way, you both keep your investment. Whatever happens, as
long as you have a water-tight agreement drawn up by a reputable
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