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House buying advise.
GnTLE3043
Posts: 6 Forumite
My partner and I are currently renting and my parents are looking to move nearer to us.
We talked and decided to buy a house together so we could get something larger and use the money from their house sale to fund the deposit.
The house is on the market with no takers and we getting desparate.
We are fisrt time buyers and thinking we might buy their house and rent it out to release the funds from the house to buy our joint new one.
Only problem is we don't have any deposit, anyway we can make this work? Their house is on the market for £115k but looking to accept £105k at rock bottom.
Please help, I've posted this twice as wasn't sure where was best to go
We talked and decided to buy a house together so we could get something larger and use the money from their house sale to fund the deposit.
The house is on the market with no takers and we getting desparate.
We are fisrt time buyers and thinking we might buy their house and rent it out to release the funds from the house to buy our joint new one.
Only problem is we don't have any deposit, anyway we can make this work? Their house is on the market for £115k but looking to accept £105k at rock bottom.
Please help, I've posted this twice as wasn't sure where was best to go
0
Comments
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I am not an expert but from what you've described, you're looking at a buy to let mortgage for your parents' house.
Do your parents have a mortgage at present? How much is left?
You tend to need a deposit of at least 15%, sometimes 25%. As you don't have that money in savings, you will need to raise it elsewhere. You cannot get a loan for a deposit. I don't know whether you parents can effectively gift you the necessary amount for a BTL mortgage deposit(assuming they have enough equity to do this and still be left with enough to buy onwards). Hopefully others will know this.
Do you know how much rent similar properties nearby achieve? Lenders often want a particular return or % above the mortgage payments.
You may also find difficulties in that you are not already house owners, which may limit your choice of lender.
Are you prepared for what being LLs involves? Read G_M's post here.
Personally, I think it sounds quite involved and a lot of different factors complicating it.0 -
I got the "buy their house" bit but you lost me on the "release the funds" part.0
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NB. There are more answers on the other thread - probably best to confine them there rather than here.
https://forums.moneysavingexpert.com/discussion/40664050
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