We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Does the deposit for the mortgage have to be seen?
birmanza
Posts: 32 Forumite
Hi, I have inherited a 1/4 share of a property , not legally but my parents have inherited and have said I can have 1/4 of the value. I would like to buy the property but do not have the deposit I would need for the mortgage. Can the 1/4 I already own be classed as the deposit or do I physically have to produce the money to the solicitor? Or can I just say I have privately given it to the owners (who happen to be my parents)?
Thanks
Angela McDonald
Thanks
Angela McDonald
0
Comments
-
Might be wrong but pretty sure the 1/4 would count as a deposit, anything that means you are not borrowing 100% of the value.we have love enough to light the streets.0
-
Yes, I would have thought you would just get the property valued and then obtain a mortgage for 75% of the value (or less if you have some more cash to throw into it)?0
-
It is perfectly acceptable to be gifted equity by a blood relative.
You would be able to 'purchase' 100% of the property made up as follows.
75% mortgage
25% Gifted equity from your parents without having to have 'cash' funds to complete the purchase.
There are a few lenders out there who are more than happy to do this for you.
Andy0 -
I can imagine this would get interesting where you have to produce the deposit on exchange of contracts if the owners were not your parents.
As they are i doubt there would be any problems for you since they could agree to exchange with no deposit at all if they so wished.0 -
If the owners were not blood relatives then it would not be possible in the first place.0
-
Go and see a whole of market mortgage broker and they should be able to advise you n this and on which lenders will and won't accept family gifts as deposits. whoeevr is gifting the 25% to you will need to seek legal advice also.I am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage adviser, 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
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.6K Banking & Borrowing
- 254.5K Reduce Debt & Boost Income
- 455.5K Spending & Discounts
- 247.5K Work, Benefits & Business
- 604.3K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards