Mortgage

lea56

Hi all,

I seem to be having trouble obtaining a mortgage.
I have been lucky enough to have been left a £220,000 house for £100,000.
(I inherited it from a very good friend)

It has been valued by two independant estate agents at £220,000, and the remaining family members have agreed to let me buy them out for £100,000.

I have been told by two of the main high street lenders: "because the person who left you their half of the property was not related to you, they cannot lend you the £100,000", I would have to find a 10 per cent deposit, even though there is £120,000 equity in the property.

Does this sound right to you, and if so why?

lea56

hcb42

it sounds plausible

effectively you havent been left anything have you? Just the right to buy the house at £100K?

If I sell you my house at £100K (It is worth a lot more) then you would still need 10% of the purchase price, so I think they are applying the same logic..

chambta

With gifted equity different lenders will have their own criteria. I'd speak to an independent mortgage broker who will help you find an appropriate lender. Even if you had the £10k in cash the difference in rate between a 90% mortgage and sub 50% LTV will be enormous.

tyllwyd

I wonder if you might be better off selling the house, and taking your share of the proceeds to put towards the deposit on a different property.

sonastin

What did the will actually say? Have you been left 50% of the property and the other beneficiaries were left the remaining 50% or were you left a lower proportion but the others are willing to let you have their share for less? That might affect how the lenders are looking at the transaction.