Buying house "5% or 10% deposit paid" ??

jopop

I have seen a number of houses advertised as "5% deposit paid" or "10% deposit paid% by the vendor.

It's obvious to me what it means but does anybody have any experience of buying a house where a private vendor pays an amount of the deposit?

What were your experiences? If anyone has any useful info or advice on this it'd be appreciated.

Thank you

russ21282

We are buying at the minute with a 5% deposit paid by the vendor.

From what our Mortgage advisor said there are only a few lenders who accept it with a mortgage. Halifax do (as that's who we are using) but i'm not sure of the others.

Another thing is the solicitor may charge extra for sorting it out. ours is charging £100.

poppysarah

I've seen a repo offering 15% deposit paid. Insane.

http://www.rightmove.co.uk/property-for-sale/property-19501067.html
15% DEPOSIT PAID ON THIS REPOSSESSION.We can arrange the Mortgage for 85% of the value of your new home(subject to status) Ideal for first time buyer.No deposit?No problem? Buy to Let Investor?We will pay your deposit too!

jopop

Ah right. I'm just trying to get a feel for the general view on it.
We're considering the option of offering full asking price on the basis that they pay a percentage of the deposit. Obviously depends on the vendors financial situation.

Would need to look in to the mortgage side a bit more maybe.

We do have a deposit but could do with some more and this might be a way...

ginvzt

When we were selling our house and talked with EA about offering paid deposit, he said it wasn't worth it as the buyer would have to pay taxes on it (taxes on gifts?). We didn't do it in the end, and I don't know if it is true.

lukekelly_2

Very often them paying a deposit really means that they've inflated the price by 15%, which is why lenders are so wary of it. It's absolutely no reason not to offer low and then haggle like hell!

russ21282

lukekelly wrote: »

Very often them paying a deposit really means that they've inflated the price by 15%, which is why lenders are so wary of it. It's absolutely no reason not to offer low and then haggle like hell!

Yes i didn't mention, that ours wasn't advertised as 5% deposit. We included it as part of our offer below asking price. Our offer was accepted 5k below their asking with the 5% included.

besonders1

You'll find that most of them insist that you must offer the full asking price which will be priced way above the "ceiling price" of what the houses are going for in that area anyway. Another similar example I have seen is vendors offering £1000 cash back based on full asking price being offered, but surely a lot of offers will be less than this anyway, as I can't see many buyers in this market would offer anywhere near what the seller asks for.

Paley71

We sold our house this way...however we did not factor the deposit into the value of the house like some sellers seem to be doing, the house was already the cheapest in the area then we offered the 5% on top.
We moved last month and it was the best thing we ever did.
I think our buyers mortgage was with the Halifax.