Buying family from property with gift of equity

Miss_Tigs

Richard_Webster wrote: »

LTV means "loan to value". Now, OK, most lenders will regard the price as the best evidence of value, but as this is not an arms length transaction they have to be more careful about valuation anyway. If the place really is worth £300K then the LTV should be based on that, but, yes, I am sure there are some who are really picky who will use price.

I think that is how our lender is viewing it.... at first they were talking about an "undervalued sale" and it affecting the LTV, but now seem quite happy that, assuming the valuation comes back confirming the £300k, they will take that as the "price" for mortgage purposes.

Our solicitor is also required to provide a letter itemising where all the monies are coming from and confirming the gift of equity etc.

CLAPTON

Miss_Tigs wrote: »

Thanks Clapton. You are quite right - we need to sit down and go through the various scenarios (were trying to do this last night, but at too late an hour I fear!)

We are definitely planning to make Wills now that we are buying property together and will be arranging joint life assurance to ensure that the mortgage is paid off if either of us dies.

With regard to my husband having to raise 50K if I died, this is something that I would wish to avoid. I presume that, as father of any children we may have, he would act as guardian to any money that was left to them anyway, until they were of age? Or perhaps my father would need to specify that the money could remain with my husband until such time as he chose to remarry, or if he died?

I would obviously not wish this proviso to prevent my husband from taking appropriate financial decisions for my surviving family as a whole! For example, he may need access to the 50K due to an unforeseen change in circumstances, such as a health issue or something.

as simple life insurance is cheap; perhaps you could consider insurance the lives for mortgage + 50k

Miss_Tigs

CLAPTON wrote: »

as simple life insurance is cheap; perhaps you could consider insurance the lives for mortgage + 50k

Good idea, that is certainly something that we could look at when we sort out our new life assurance

[Deleted User]

The thing is.., u feel as if your marriage will last forever right now but death I'm afraid is not the only thing that can happen to a marriage. U need to think NOW about how to safeguard your equity position in case of divorce. However u feel right now, its a 50/50 chance of the marriage failing statistically.., and lol.., the person u divorce is quite different to the person u marry. I am not being needlessly flip.., I'm afraid its quite true. U read enough on here to know this is true.

Please look at protecting your position.., don't risk losing the equity your father has given you through optimism.

A good example of the potential quagmire is https://forums.moneysavingexpert.com/discussion/3312046