Parents Property, Gift or Buy
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H0VIS
Posts: 2 Newbie
Hi
I would like to buy one of my parents properties, its been valued at 350k.
The problem is my credit rating is not great - "fair". I can put 50k down as deposit.
Would it be possible for my parent to gift me the property and for me to take out a mortgage straight away for 300k? I hear that most lenders will not do it for 6 months?
Would really appreciate any advice.
Kind Regards
I would like to buy one of my parents properties, its been valued at 350k.
The problem is my credit rating is not great - "fair". I can put 50k down as deposit.
Would it be possible for my parent to gift me the property and for me to take out a mortgage straight away for 300k? I hear that most lenders will not do it for 6 months?
Would really appreciate any advice.
Kind Regards
0
Comments
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The problem is my credit rating is not great - "fair".
Without knowing the cause of your rating only being fair difficult to comment on the likelihood of your application being successful.
Is a mortgage of £300k within the bounds of affordability. That's another question.
Will your parents incur a tax liability in selling this property? As you suggest that they own more than one.0 -
What are you going to do with the £300k?0
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Hi
I would like to buy one of my parents properties, its been valued at 350k.
The problem is my credit rating is not great - "fair". I can put 50k down as deposit.
Would it be possible for my parent to gift me the property and for me to take out a mortgage straight away for 300k? I hear that most lenders will not do it for 6 months?
Would really appreciate any advice.
Kind Regards
Assuming you'd be giving them the £300k, how would this be different to just buying the property from them?0 -
Hi
Thanks for the reply
I earn about 90k - after tax, so think my earning are ok to cover 300k.
Not sure about my parents tax situation.
The 300k would be going to them to buy the house.
I assume I would get a mortgage (or a better deal) if I had the house gifted to me first, as it would be an asset - rather than just trying for a mortgage to buy it, before I own it. Mortgage vs Re-mortgage.0 -
It would be easier to arrange a mortgage with a £50k gifted deposit than for your parents to gift you the entire property and then trying to get a mortgage.0
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Why do you have a poor credit rating when you earn£90k?
Are your parents able to wait ? Could you fix your credit situation over say the next year and then buy Ina years time with the gifted £50k?0 -
There is a massive difference between them gifting it to you and your buying it.
What is the objective here?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
you have a few issues to consider.
CGT assessment for parents on disposal(gift or buy)
SDLT with connected transactions with gift house and gift of cash or a buy
IHT with a PET and a subsequent gift back.
If they don't need the cash in a hurry they could become your lender.
£90k should cover some decent monthly payments0
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