gift-mortgage

jarvis007

hello-martin-my-parents-have-to-sell-there-house-in-july-this-yr-due-2-divorce-its-worth-180,000..me-and-my-partner-are-1st-time-buyers-and-can-get-a-mortgage-of-150,000..if-my-parents-gifted-us-30,000-would-this-1...count-as-a-20%-deposit-and-2..being-a-builder-myself-.if-i-worked-on-the-house-extended-and-decorated-to-good-standard-how-long-would-we-have-to-stay-in-the-property-before-we-could-sell-and-once-sold-for-hopefully-higher-price-would-i-be-able-to-pay-them-back-the-money-they-gifted-me-and-get-another-property...thus-avoiding-using-all-our-savings-just-for-a-deposit....ur-help-would-be-much-apreciated-thx....:beer:

Annisele

Firstly, if your parents gift money to you, then it's a gift - with no expectation that you will pay them back. In that case, it would be fine to use the money as a deposit.

If they loan money to you - with the expectation that you pay them back - then it's not a gift, and the lender would likely be unhappy about you using it as a deposit. (If you used your savings as a deposit, and then your parents loaned you money with which to do the place up, there wouldn't be a problem).

Secondly, so far as doing it up and then selling it on is concerned - if the revenue is satisfied that you don't have a business going as a property developer, then in theory there is no minimum time you'd have to stay. In practice, lenders are often reluctant to lend to buyers if the seller has owned the property less than six months - so realistically you'd probably have to stay there at least six months.

Thirdly - even if it is worth £180k now, that doesn't mean that it will be worth £180k in June. I know that's only two or three months away, but the property market might move over that period.