Possible house buying help

b21playa

Hi all

This is a long one;

Right my parents own their house outright and have been offered a house by my uncle due to divorce at a good price.

Now only one of them works but my sister has offered to go in on the mortgage in order to gain mortgage.

There plan is to buy the new one and sell their old (which is being refurbished).

Now the house is going for £190k, was valued at £300k in the peak. As this stretches into the stamp duty part, can they agree price for £175k and £15k for extras (fixtures&fittings) ???

I've had a look at mortgages and first direct do 75%, they've got the £40k for deposit, but as the house is actually worth more then £190k, is it possible to borrow over the £142.5k which is 75% off the purchase price?

They intend in the year hopefully, to complete theirs and sell it on

Doozergirl

No, 175 + F&Fs would not be acceptable to anyone - HMRC or solicitor. If it's such a good deal, this shouldn't even be an issue. Sometimes you can be too tight.

Stamp Duty is payable on the value anyway, not necessarily the same as the purchae price. I would even suggest that the property is worth more than the 190k it is being offered for and therefore in theory, more stamp duty is payable.


142.5k + 40k doesn't even add up to the 190k - how can they borrow more? Even if they had a bigger deposit you can only borrow 75% of the sale price. If they want more than 142.5 then the sale price would have to be higher and the mortgage company would have to accept that sale price as a fair valuation; you need to consider income multiples here also - your sister needs to earn enough to qualify for the amount they want to borrow. Why do they need more money anyway if their own house is owned outright and is being sold?