I need help with first time buying.

hazza74

My girlfriend lives with her grandma, and her grandma wants to sell the house to us, it is already paid for and she only wants £80.000 regardless of the value, how do we go about buying this from her? We both dont have any knowledge about morgages oy buying property, some advise would be gladly appreciated.

Thanks.

josievg

What are your salaries?
How much deposit do you have?
Do you both have clean credit records - ie no late payments, etc?

GMS

It may be possible for you to buy for the 80k and use any difference in value as a deposit. This would be classed as a 'gifted deposit' and would be allowed in this circumstance due to it being a close family member sale. This would be subject to the valuation being sufficient.

If not you would need a deposit together with sufficient incomes and suitable credit history.

One stipulation of a gifted deposit may be that Grandma moves out. What is she intending to do?

hazza74

We are on about 50k between us and a good credit history. Her Grandma has not got long left to live and wants to use the money to give to other family members.

GMS

What is the house worth?

hazza74

We think it's worth about 100k, but would need to get it valued i guess

GMS

Do you have a deposit saved?
Any credit problems such as defaults or CCJ's?

hazza74

We have savings but not much, so you have to put a deposit down?
Also never had problems with credit.

GMS

You wouldn't necessarily need a cash deposit for this type of purchase. If Grandma is happy to gift the equity some lenders will allow it.

You should see a 'Whole of Market' broker to be safe. Not all lenders allow it so you may come unstuck if applying yourself.

Pretty straighforward transaction though some will insist she move out on completion. Is this the case?

hazza74

Thanks, some good advice. Like i say her Grandma is not well and would want to spend her final days there, she has nowhere else to go!

GMS

Not all lenders insist on her leaving. Just something to keep in mind before application.

She would need to sign a letter stating deposit is a gift and non refundable. If you dont want to answer this then don't but is she of sound mind? If not there could be issues later on.

A decent broker will be able to guide you through the process. It is nowhere near as complicated as it sounds.