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Buying Parents' Home
ShadeUK
Posts: 7 Forumite
Hi all, this is my first post so please forgive me if I have posted in the wrong place!
I would appreciate some advice on the idea of buying my parents' house for less than it would sell for at market value. My wife and I currently live in the house and would like to get our foot on the property ladder.
To use example figures: Potential House Market Value: £85,000
Sale Price to us: £65,000
The house needs some work doing to it, would the bank give us a mortgage of say £75,000, the extra £10k would be invested into the house to mordernise it.
This poses two more questions, would we need a deposit at all if the mortgage value is £10k less than the value of the property and also are there tax implications of doing the above?
All feedback would be greatly appreciated!
BTW this site is awesome, I'd just wish I found it sooner!
Look forward to hearing back from you
ShadeUK
I would appreciate some advice on the idea of buying my parents' house for less than it would sell for at market value. My wife and I currently live in the house and would like to get our foot on the property ladder.
To use example figures: Potential House Market Value: £85,000
Sale Price to us: £65,000
The house needs some work doing to it, would the bank give us a mortgage of say £75,000, the extra £10k would be invested into the house to mordernise it.
This poses two more questions, would we need a deposit at all if the mortgage value is £10k less than the value of the property and also are there tax implications of doing the above?
All feedback would be greatly appreciated!
BTW this site is awesome, I'd just wish I found it sooner!
Look forward to hearing back from you
ShadeUK
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Comments
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Where do your parents live?0
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They live abroad0
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you would need a deposit. A minimum of 10% of either the purchase priceMF aim 10th December 2020 :j:eek:MFW 2012 no86 OP 0/2000
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So, basically, your parents are just going to give you 20 grand and have nowhere to live if they want to return to the UK?0
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Thank you for your replies.
They want to release the money in the house. By selling to us they get around having to complete a HIP, avoid the hassle of having to hold on for a buyer etc.
They do not need the house as a fall back in essence.
£85k would be the value once modernised, its probably worth £75k now so they would be giving us £10k effectively. They said if they ever sold the house they would give us £10k for a deposit for a house. But due to timing and other complications it would suit us to to buy the house off them.
I hope this makes sense?
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[QUOTE=LilacPixie_you would need a deposit. A minimum of 10% of either the purchase price[/QUOTE]
This is not correct....If you are buying from parents, you can do a "concessionary purchase".......professional advice is the best thing here.....0 -
Thank you Vigilent, I will research concessionary purchase. Do you know anything of potential tax implications?0
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