Deposit for Mortgage

scoobihr

I have a friend willing to sell his flat to me for £60,000 to cover his mortgage, the flat is actually worth about £80,000, can I use the £20,000 difference as a deposit and borrow £60,000, or do I need 20% of the amount I want to borrow.

[Deleted User]

Wher are you going to get the 20k from to pay the deposit?

Either way, it will be mortgage fraud. Unless you are going to buy it for 80k and pay 20k deposit.

scoobihr

I certainly don't want to committ fraud, my plan was to buy the flat for 60k, give it a quick make-over and sell it for 80k.

Wobblydeb

Why would your friend do themselves out of £20k?

Is it really worth £80k? :undecided

scoobihr

My friend has moved to the other side of the country and he just wants to get rid of the flat, it does need decorating and possibly a new boiler. I know it sounds complete madness but he just can't be bothered with it.

I haven't had an official valuation but 80k seems to be what similar flats in the same area are going for.

getmore4less

scoobihr wrote: »

My friend has moved to the other side of the country and he just wants to get rid of the flat, it does need decorating and possibly a new boiler. I know it sounds complete madness but he just can't be bothered with it.

I haven't had an official valuation but 80k seems to be what similar flats in the same area are going for.

OK if it a fix and sell why bother with the mortgage just offer to split the difference over £60k

You will do it up and sell it for them while they are not there. anything over £60k+costs(which you fund up frontsay max £4k) you split at some agree % I think 50:50 would be fair they fund the capital you do the work.

scoobihr

Thank you, that's a really good idea. It's too good an opportunity to miss out on just because I couldn't raisie all of the deposit.