mortgage-UK citizen abroad

lordoftheundead

Hi people

situation

i'm currenlty living in australia with good employment and am looking into ways of purchasing my parents house in the UK off them at a rather reduced rate with the intention of renting it to them until they find somewhere then rent it out to whoever.
(not as bad as it sounds, family planning not me sending the folks to te kirb)

the rent would cover the repayments however from what i can tell lenders only lend on purchase price not market value meaning id still need a large deposit even if i was buying it with 30-40%equity in the first place.

ive seen an option of using a bridging loan to purchase as they go on value not purchase price then refinance to a normmal loan

does anyone have any thoughts?

im not sure what my max LTV % would be as im currently abroad

best regards

pete

theartfullodger

Sounds like you want to buy at an knowingly incorrect price (IHT transfer of asset at below-market price) & rent at a fraudulent rent (fraud as in when declaring to the tax man your income - he'll probably expect & tax you at market rent).

Not sure this will tick all the boxes with HMRC & mortgage companies & Landlord Insurance guys...

Hmmm

Don't think I'd take this approach. Good luck!


Lodger

herbiesjp

There is nothing wrong with family gifted deposits.

Your scenario could be done with a few lenders despite the problems of being an ex-pat and renting to family

You would need to speak to a good whole of market adviser qwho has done similar deals in the past

lordoftheundead

Thanks guys, yes a family gifted deposit would be the way to go. as for rent this would of course be at market value as would the stampduty payable on the property. renting back to family would only be temperary as my parents would be looking to move else where.

wil try searching for anyone who has done these sought of deals before.

anyone here know of anybody

cheers

pete