Buying from MIL

dingaling

My MIL has offered us her house for about £150-£200k under valuation she would like £400k. Basically she just wants money to go rent a little flat and travel etc. Our current home is mortgaged to the max so we would need a £400k mortage. If the house is valued at £600000, is it counted as a deposit? We only need a mortgage of 66% to the value of the house. I am not sure we could get such a large mortage, but we want to leave no stone unturned in trying to sort this out for us!

We know that if she dies in the next 7 years it could complicate things because of selling the house cheaper than she could. It is the chance of a lifetime for us as we could never afford a £600k home. We have 7 children and are shoe horned into what we have but we make it work. At MIL's house, it would be a forever home, with loads of potential as it hasnt been touched for years.

Our other option would be to stay where we are and do it up. However I feel MIL house would be a 'forever' home as having so many children and hopefully future grand children, we would all be able to be together regularly, we couldnt do that here.

What would you do?!

beecher

You haven't mentioned your salary, or your credit rating. To service such a large mortgage, you'd have to have a pretty huge salary - at least £100k/year I'd think.

Patchwork_Quilt

We bought my Mum's house (for the asking price) and did everything by the book - proper valuations, solicitors the lot. Partly because I have siblings and didn't want to be accused of anything untoward in later years. How do the rest of the family feel about this? Have you had valuations? You need proper legal and financial advice. Yes, it looks like an excellent deal and everyone will be happy but be careful. What if something happens and you have to sell? Will you have to give some of the equity back? Someone needs to think of all eventualities.