Purchasing from Parents

Palmtree3

We are looking to buy my parents house, they have offered to sell it to us for £100K less than its value. We will then take out a mortgage to what we can afford and pay them which they will in turn use to buy a smaller property. What are the implications in doing this, as we won't be paying full market value ?

mad_dog_woman_2

Always use a good conveyancing firm and buy your parents house legally. Are you buying a percentage of their house or outright? What do you mean when you say you are getting a mortgage to what you can afford? Your parents can sell their house to you for any price if it is theirs mortgage free i would think. Visit a solicitor with your parents for further advice. You cannot use the same conveyancer to purchase the house as your parents to sell it to you, conflict of interest. Lucky you though, what a wonderful gift!!!

poppysarah

Why don't you buy a smaller place you can afford with the mortgage you're proposing getting on your parents house?

McKneff

There could be implications for your parents so they need to seek legal advice first, if they want to claim any means tested benefits in the future (and none of us know what can happen in the future) they could be accused of deprivation of capital, like I say, they need to take advice.

finnigan

Don't forget you will need a deposit. If your parent sell you the house for, say for example, £50k then regardless of its value you will still need 5k up front for a 90% mortgage.