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Cash back deal when buying a house?
markus1982
Posts: 3 Newbie
Hi, my wife and I are wanting to buy a property we have seen. The downside to the property is it needs an extension prior to us moving in. All our funds would be tied up in the deposit in buying the house leaving us no capital to build the extension. We don't want to go down the personal loan route as it is far too expensive.
Is it possible to do a deal with the current owners of the property so that we pay more for the house than the agreed sale price, then they give us back the difference once the sale has gone through (obviously the amount would still be the same or less then the house has been valued at). eg House value £250.000 we offer and they accept £235.000, we pay them the £250.000 and they give us back the £15.000.
Is this possible and how would we trust them to pay us back the £15.000?
Many thanks.
Is it possible to do a deal with the current owners of the property so that we pay more for the house than the agreed sale price, then they give us back the difference once the sale has gone through (obviously the amount would still be the same or less then the house has been valued at). eg House value £250.000 we offer and they accept £235.000, we pay them the £250.000 and they give us back the £15.000.
Is this possible and how would we trust them to pay us back the £15.000?
Many thanks.
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Comments
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are you mortgaging the property?
if so then are you confident that the valuation would take into account your fraud?Sealed pot challange no: 3390 -
Never gonna happen I'm afraid.
1. If you tell the mortgage company they will refuse to lend on that basis.
2. If you don't tell them, that is fraud.
3. Why would the vendor assist you in said fraud?
4. Even if vendor did agree, you can't have any legal documents drawn up since they would be evidence of the grubby little scheme. The vendor could quite easily walk away with your £15k.0 -
markus1982 wrote: »Hi, my wife and I are wanting to buy a property we have seen. The downside to the property is it needs an extension prior to us moving in. All our funds would be tied up in the deposit in buying the house leaving us no capital to build the extension. We don't want to go down the personal loan route as it is far too expensive.
Is it possible to do a deal with the current owners of the property so that we pay more for the house than the agreed sale price, then they give us back the difference once the sale has gone through (obviously the amount would still be the same or less then the house has been valued at). eg House value £250.000 we offer and they accept £235.000, we pay them the £250.000 and they give us back the £15.000.
Is this possible and how would we trust them to pay us back the £15.000?
Many thanks.
Sounds messy - might be possible if buying from family etc, but imho you'd be leaving yourself open to accusations of mortgage fraud & not getting paid.
I'd look to for another property.0 -
Hi, ok many thanks.0
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I was under the impression that it is only fraud if you pay more than the house is worth?0
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markus1982 wrote: »I was under the impression that it is only fraud if you pay more than the house is worth?
Its fraud if you gain by telling porkie pies.
If you tell the truth on this the lender will refuse to lend in this scenario.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.0 -
It's fraud if you lie to the lender in order to get your hands on their money. Anyway you would be paying more than it's worth, £250k for a £235k house.0
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