Vendor gifted deposit...

summer1982 · 18 January 2011 at 5:03PM

Does a vendor gifted deposit effect anything...?

We had one 2 years ago when we bought this house, it was only £8k and we could only get a mortgage paying 7.8% which is bad I know but we really wanted to get on the ladder.

I have read another post which said because they bought with a vendor gifted deposit the house probably isnt worth what we paid?

CloudCuckooLand · 18 January 2011 at 5:15PM

Well, yes. If the vendor gives you £8k - whatever the mechanism for giving it to you - that pretty much confirms they didn't think it was worth the asking price.

Nor would a surveyor, today. Especially with the tighter mortgage market at the moment.

Especially with a dodgy roof.

Couple the specifics of that house with the general downturn in the market in many locations over the last two years, and you could well be at breakeven, at best.

Act in haste, repent at leisure.

silvercar · 18 January 2011 at 5:27PM

I wouldn't worry what it was worth then. Worry what it is worth when you want to sell it. In the mean time enjoy living in your home.

TrickyDicky · 18 January 2011 at 5:39PM

Unless you're trying to sell or remortgage, any loss or gain in the value of your home is just on paper - a house is only worth what someone is willing to pay. If you dont need to remortgage or sell, any gain or loss is tied up in the property so you couldnt realise cash anyway.