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Newbie advise

Bit of background the next door neighbour's company went down the river about 6 months ago and he put his house on the market, no buyers and he is now in trouble and needs to sell, we made a cheeky offer based on the fact we are renting and can start the process straight away. Our offer is below market value and we will be doing it privately between us with no agent involved, our offer is approx 20k below market valve.

My question is that on the mortgage application where I enter the value do I have to declare the price paid or can I enter the market value, my deposit means an 84% LTV and when I add the 20k reduction the deals on offer are much better, as we are doing it privately if the Mortgage valuation comes in at market value would they ever check or need to know what I actually paid for it?

Forgive me if it a naive question I’m just interested if we can squeeze a bit more out the deal.

Comments

  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Lender will use the LOWER of the purchase price or valuation for their calculations.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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