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buying a house without a mortgage??

marcusrapid
marcusrapid Posts: 26 Forumite
edited 2 December 2009 am31 8:16AM in House buying, renting & selling
Hi all

I have found a house I am keen to move into and am in a lucky position where my parents are going to lend me the money to buy. Obviously I am not needing a mortgage so would like some advice on what I need to do as a cash buyer? Things like survey etc.......

many thanks

MS

Comments

  • Jonbvn
    Jonbvn Posts: 5,562 Forumite
    Part of the Furniture 1,000 Posts
    Personally, I would always get a full survey done, just for peace of mind.

    The vendor or their solicitor may request proof of funds.

    Make sure your solicitor is in possession of the funds well before completion. Transfers should be done by chaps from you. This means your parents should transfer the funds to you early.

    Perhaps consider getting an official legal contract agreement with your parents outlining how repayment will be done.

    Negotiate a good deal with the vendor, since you are a cash buyer.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • As your parents are in effect the lenders, I believe they would probably wish to perform equivalent checks on the property as any lender would.

    I suspect they will also wish to place a charge on the register as well.

    The true (not perceived) extent of your abilities are of consideration. If you need to look up the standard loading separation of floor joists for example, then you are out of your depth to not have a survey done..... as much for your parents as for yourself.


    ...
  • theartfullodger
    theartfullodger Posts: 15,429 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 2 December 2009 am31 8:37AM
    I'd want to make sure everything was documented, not least to ensure HMRC didn't think you/mum-n-dad were trying to avoid tax (eg IHT or CGT) somewhere... and also in case any other relo got jealous and started making trouble - maybe in a few years time when people's memories ain't so good.

    You are a very priviledged person: I'm sure you'll use your good fortune to benefot others, as you have no doubt been doing already
  • thanks for the quick response - Its quite an old house so will def get a survey done. still a bit confused on what I will need to do to get the house to be legally mine? ideally I would like to have the house in my name but still have my parents owning the house until I paid it off. In that way if at any time there was a fall out they would have some security!

    Can this be done?
  • what you are asking is achieved by trusts: one party/ies are legal owners and the other party/ies are beneficial owners. Or both either niether. you need also to be clear as the the duties/responsibilities of the differrent types of ownership.

    It can get quite complex with conditions that the parties agree to.

    If this needs to be set up to fulfill each of your personal needs tax etc then you need to ask for what purpose do you need the house in your name for example


    ....
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