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A cash offer from a seller: advice needed
JJmcClure
Posts: 49 Forumite
Hello everyone
Am after some advice and you lot are pretty good at giving it on here
Trying to buy a flat. After valuation my lender wants a 15% deposit (85%LTV) after initially telling me a 10% deposit was fine
I'm about £4,000 short of the deposit
The seller of the flat, concerned he's going to lose the deal, has offered to give me £4,000, no strings, to make sure the deal goes trough. In other words, he wants to give me cash he doesn't want back to make this happen
Is this legal? is this allowed? Are there any pitfalls, etc? Is this a good or really bad idea?
Of course, the Estate Agent thinks it's a great idea, but he won't be there if it gets me in the brown stuff in the future
Cheers in advance
Am after some advice and you lot are pretty good at giving it on here
Trying to buy a flat. After valuation my lender wants a 15% deposit (85%LTV) after initially telling me a 10% deposit was fine
I'm about £4,000 short of the deposit
The seller of the flat, concerned he's going to lose the deal, has offered to give me £4,000, no strings, to make sure the deal goes trough. In other words, he wants to give me cash he doesn't want back to make this happen
Is this legal? is this allowed? Are there any pitfalls, etc? Is this a good or really bad idea?
Of course, the Estate Agent thinks it's a great idea, but he won't be there if it gets me in the brown stuff in the future
Cheers in advance
0
Comments
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oooo sounds a bit strange to me. i would ask you to solicitor, you may just be able to get away with signing some sort of deed of gift, but still sounds a little odd
good luck
Thank you to all posters0 -
You need to declare this to your lenders, who will then reduce their mortgage offer by £4000. It took them ages to catch on to this sort of thing (or stop turning a blind eye).No reliance should be placed on the above! Absolutely none, do you hear?0
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One of the first things the Estate Agent said was 'don't bother telling your solicitor where you got the money from'
the new deal is with a different lender
I'm not feeling at all comfortable with this idea0 -
Some lenders are cool with this, Halifax for example - As long as it is declared up front to both lender and Solicitor - If you lender is aware - Why would you solicitor not be OK - BE WARY --!0
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