BTL Deposit

Hello123_2

Hi,

I am wondering if someone can help.

My grandmother wants to give me my inheritence now (around £25k) but it's all tied up in her house but she's looking to sell up and move to a sheltered accom place this year.

I want to buy her house from her and let it out as it's in an excellent part of town, done up nice and would achieve around 9-10% yield. Houses on her row never come up for sale literally!

I think i satisfy the BTL mortgage criteria (have sufficient earnings etc) but don't have the 25% deposit in liquid form...my grandmother is technically knocking 25% off the house price for me if that makes sense.

Will a mortgage lender touch me or is it all too complicated?? Thanks in advance.

kingstreet

I've never come across a "purchase at undervalue from a family member" for a BTL before, but that's not to say it's not possible.

TBH I'd find a good whole market broker for this. You could be on the phone for months and never find a lender to do it. Specialist lenders doing this kind of stuff are off the high street and tend to deal with intermediaries, rather than direct.

By all means make enquiries of lenders yourself as well.

This thread is likely to generate a few posts about deprivation of assets, so it might be worth googling that and a look at the AgeUK leaflet on the issue.

Hello123_2

Just had a quick look - see what you mean :-/

Think i'm going to have to forget the whole idea...shame because gran will sell that house to a BTL'er I just know it!!

Dave_Ham

Just seen both your posts.

Why do you not raise the money on your residential property if it is such a good deal.

Either that or get consent to let on your original property and take this one as a residential. It is easier to find a lender when purchasing at a lower than market value from a family member on a residential mortgage...