Buying a house for less than its value?????

dixon1983

Thanks Vigilant.
Could you explain what that is if you don't mind?
Also what's LTV?

kriss_boy

Predictably enough people on these boards are more concerned about the prospect of someone getting a bargain than just answering the question!!

Why are people so scared of others getting a good deal these days?

VIGILANT22

ltv was 85% and it means if you're buying it from a parent

VIGILANT22

kriss boy...i did answer the question!

kriss_boy

I know, but predictably others immediately shot down the notion of someone getting something for a good price.

You see it all the time on these boards- many people desperate to believe that anyone who has bought in the last 2 years has lost money on their home.

We got a mega bargain in feb 2008 yet when if I dare mention it I get immediately put in my place as to its current value....

VIGILANT22

Xxxxxxxxxxxx

kai666

kriss_boy wrote: »

I know, but predictably others immediately shot down the notion of someone getting something for a good price.

You see it all the time on these boards- many people desperate to believe that anyone who has bought in the last 2 years has lost money on their home.

We got a mega bargain in feb 2008 yet when if I dare mention it I get immediately put in my place as to its current value....

I didn't shoot it down either, i just said you can't buy a house for under it's value, and that getting a mortgage without a deposit is, if not impossible, very difficult, with I imagine a very poor interest rate

dixon1983

Ok. Thanks for your help anyway.
Looks like the best option for us is to still try to save a 10% deposit based on the reduced asking value of £120k... then if we come up short the parents could make up the difference (providing its in the gift threshold), they'll then get anything they gave us back once the deal goes through?

stuart2588

thanks for replies everyone. I have done a bit more research and if you have a look on the search engines here you will see some more info under the title vendors gifted deposit.

Still confusing though.

Raggs_2

The 3k gift threshold is only for inheritance tax purposes, in England all gifts are tax free, however over 3k can be included for inheritance tax purposes if it was given within 7 years of the death. At least that's what people say over on the cutting tax boards.