Sort of Vendor Deposits but not really

DominicJ_2

Hi all, while since I posted, saga still ongoing.

A brief bit of back ground.
My girlfriends parents owe me £10,500

The only way they can pay me back, is to sell their house, which is on the market for £150,000, and has an offer from some kind from a "buy your house in seven days" company of £126,000

I'm open to the idea of buying their house for the £126k, but lack the pre-requisite £12,600 deposit, because my inlaws have it.

With me so far?

I am going to guess the answer is "no", but is there any chance a bank will look at the above and not laugh me out of the building?:rotfl:

If it helps, I can show about £4k going from my bank to theirs.

I assume it doesnt because it shows I gave them the money, rather than lent it, but thought I would ask.

Any help would be greatly appreciated.

Dominic

GMS

Is your girlfriend going on to the mortgage with you?

Wh05apk

Some lenders will accept this, effectively they will be gifting you the deposit.

Presumably though, they will be moving out of the property and you will be living there?

DominicJ_2

Girlfriend will be yes, probably, doesnt have to if thats easier.

Yes, they will be moving out, we will be moving in.

GMS

A joint mortgage for a sale at undervalue with the equity deposit being gifted from parents is possible depending on all usual criteria being met.

Have a chat with a broker or if you go direct maje sure the lender is happy with the scenario up front

DominicJ_2

Awesome, I was expecting it to be a big no no, didnt think banks would view vendor deposit and parental vendor deposit differently

holly_hobby

GMS wrote: »

A joint mortgage for a sale at undervalue with the equity deposit being gifted from parents is possible depending on all usual criteria being met.

Have a chat with a broker or if you go direct maje sure the lender is happy with the scenario up front

Yep - perfectly possibly as GMS states (subject to your own status of course).

This is technically a discounted pch price/family purchase sale, whereby the value for mge purpsoes, will be based on the market valuation itself, not what you are exchanging in monetary terms for it (as is the norm) - so in theory you may not need to further supplement the "deposit" at all. (a common occurance of such arrangements are seen with RTB purchases)

A decent broker will source and place this in a jiffy for you, and support you throughtout the whole application process and beyond.

Hope this helps

Holly x

Simon_gloster

Beautifully put again H.

holly_hobby

Simon_gloster wrote: »

Beautifully put again H.

:kisses3:

H x

inmypocketnottheirs

holly_hobby wrote: »

:kisses3:

H x

Are you a broker?

holly_hobby

inmypocketnottheirs wrote: »

Are you a broker?

Ex broker - now an industry auditor and trainer

H