Mum & Dad want to buy a property for me to live in

miss_mollie_2

Hi everyone,

I wonder if anyone could give a bit of advice, and hope that I give all the info you will need .

My parents want to buy a property for me to live in (they will continue to live in their own home). They own their home which is mortgage free , have no debts or poor credit history.

They both work - Dad is the oldest and is 52.

I am unable to apply for a mortgage in my own name due to personal reasons.

Someone who Mum works with told her they would need a family mortgage (which their sister & brother in law had got for her nephew) - is this correct ?

How does this work, is it the same as a normal mortgage ?

Which mortgage lender should we apply to who offers a family mge?

How much deposit would we need ?

Any and all help greatly received .:)

Many thanks

Miss Mollie

miss_mollie_2

just wanted to bump above all the spam that has appeared ... !

Wh05apk

They have 2 ways of doing it, they could remortgage their own property to raise the funds, then buy your house for cash, this would probably be a lower loan to value, hence a lower rate, alternatively they could get a mortgage on the new property, declaring to the lender that a "dependent" relative will be living there.

Most lenders would allow either of these. Are you expecting to be there permanently, or do you view this as being relatively short term , perhaps until you can take over in your own name? if so they could consider interest only to keep their commitments down.

miss_mollie_2

Thank you for your help ...

Hopefully it be my home longterm, and at some time I will be able to be added to the mortgage.

I will tell my parents your advice, I think they wanted to buy the property with a mortgage to keep things separate, as I have a sister and Mum & Dads property will be both our inheritance (on hopefully) a day a very long, long, long way off .. !

Would you suggest a particular bank as generally have the best rates and are easy to talk to ?

Many thanks for your help

Miss Mollie

CLAPTON

facts always help

there are potentially important tax issues here

i.e. issues of capital gains tax and inheritance tax

give us some facts

how much is your parents estate likely to be worth

how much the house?

why can't you be on the mortgage (sorry but it's potentially important to know)

miss_mollie_2

Hi Clapton.

I had a previous mortgage on a property which I sold to repay os debts and try and get myself straight - these debts (not mortgage) had become defaulted due to a relationship breakdown, and although all now satisfied will stay on my credit record for the next few yrs - so thats why I am to be kept out of application.

They know that there may be taxes if they sell the property (Dad has already looked into this side of things, and also dealt with inheritance tax when their wills were recently made).

We intend to speak to a bank for their help/guidance, are you able to suggest whom would be best to approach ?

Many thanks

GMS

A bank will not give you guidance, merely sell you one of their own products.

When were your defaults and for how much?

Do you have any deposit available if you were to purchase your own property (should a mortgage be available) or would parents be able to provide this?

miss_mollie_2

Hi GMS,

The adverse is sufficient enough to know that there will be issues in respect of any mortgage application.

So the property will definately not be bought in my name.

We are looking for a bit of guidance as to which the best bank or building society to approach would be, based on Mum & Dad buying for me to live in.

Are you able to give any guidance to which lender is the best for this type of situation (whom we may then have an appointment with and get their thoughts to whether we are suitable).?

Many thanks

GMS

I do not know anywhere near enough about yours or your parents circumstances to suggest a lender.

Have you explored any lenders who would consider adverse? Why not list the adverse?

Thrugelmir

miss_mollie wrote: »

We are looking for a bit of guidance as to which the best bank or building society to approach would be, based on Mum & Dad buying for me to live in.

Will you be paying the mortgage (in the form of rent)?

miss_mollie_2

I don't want to list the adverse as it has no relevance, as the mortgage will definately not be in my name regardless.

I was only asking for general guidance on which lenders consider parents buying a property for their child to live in, so as to have an idea who considers this type of arrangement. I understand if you can't help with that based on the information given..

Also, Thrugelmir no I won't be paying the mge/rent to my parents (for the timebeing anyhow).