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Mortgage - question regarding deposit

Good morning,

I am just after a bit of help please.

My nan has just died and I have just found out that my parents bought her house 25 years ago and actually own it.

If I were to buy it from them at a knock down price would the reduction in price act as a deposit for me. For example if the house is valued at £180k and they sell it to me for £150k would that £30k reduction act as my deposit as there would be £30k worth of equity in the property straight away or do I need to come up with some sort of deposit?

I am currently renting privately and I have no deposit saved to put down.

Any help would be appreciated.

Comments

  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    If your parent owed the house but did not live in it there will be CGT implications when they sell.
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    If you buy at undervalue from your parents the majority of lenders would allow you to use the equity as a deposit. Your parents may need to sign a declaration stating it is a non refundable gift.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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