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Loan from the parents
Househunter2
Posts: 6 Forumite
Hi
I hope this is the right forum. I'd appreciate any advice anyone can give, we're going to seek legal advice about this as well but I would like to know as much as I can before we do!
My partner and I are buying a house off his parents for its full market value. It won't be our main residence yet so we're having to get a buy to let mortgage. This has all been ok'd with the mortgage lender except that we can't afford the whole deposit so his parents have offered to loan us the rest (they will get an unsecured personal loan). We will then repay them the loan and whatever interest in a few years when we can afford to (we will also declare this on our mortgage application).
Does anyone know if there might be any tax implications with this?
Thanks in advance!
I hope this is the right forum. I'd appreciate any advice anyone can give, we're going to seek legal advice about this as well but I would like to know as much as I can before we do!
My partner and I are buying a house off his parents for its full market value. It won't be our main residence yet so we're having to get a buy to let mortgage. This has all been ok'd with the mortgage lender except that we can't afford the whole deposit so his parents have offered to loan us the rest (they will get an unsecured personal loan). We will then repay them the loan and whatever interest in a few years when we can afford to (we will also declare this on our mortgage application).
Does anyone know if there might be any tax implications with this?
Thanks in advance!
0
Comments
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Are the mortgage co aware that you'd be borrowing the deposit? Surprised they've agreed to lend if so.
Why buying now? Do you want to be LLs? What if the house is empty for a significant amount of time, or gets trashed. I wouldn't do it unless forced into a corner.
Why don't you just save a deposit and buy when the time's right for you both?
Sorry, not what you asked... but I think people need to make sense of it. Also would have thought you'd at least have saved on EA's fees and got a bit of a discount from market value...
Good luck.
Jx2024 wins: *must start comping again!*0 -
Why buying now? Do you want to be LLs? What if the house is empty for a significant amount of time, or gets trashed. I wouldn't do it unless forced into a corner.
I agree. You may need to think about this couple times. Personally, I will only buy a home at the time I really need it.0
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