Auction property bought for daughter

ikaj

I bought a house at auction last week ( cash buyer). The plan is for my daughter to buy it off me when she sells her own house. I understand that stamp duty will be paid twice, but will she be able to obtain a mortgage straight away to fund the purchase ? Have read that there is a problem getting a mortgage within 6 months.
All advice much appreciated

kingstreet

Many lenders won't accept a mortgage application on a property which has not been owned for six months or longer.

It might take her more than six months to sell if she hasn't yet found a buyer.

ikaj

I agree that it will probably take six months to sell her own home - not yet on market. Just had to buy the auction property for her - such a bargain! Do you know what the lending criteria wil be i.e. Auction price or market value?

thelem

Have you completed yet? If not, is it possible to restructure the transaction in such a way that she buys the house with a 100% "mortgage" from you, and then remortgages (and pays you back) when she sells her existing property. If not, a mortgage advisor may be able to suggest other solutions.

Fire_Fox

Welcome! Difficult: see an independent mortgage broker.

ikaj

Yes I thought about doing something like that to avoid paying stamp duty twice. My solicitor told me that the purchase must go into my name as I signed the contract in my sole name at the auction (daughter was away on holiday at the time)

G_M

ikaj wrote: »

Do you know what the lending criteria wil be i.e. Auction price or market value?

When your daughter applies for the mortgage, the lender will send round a surveyor to do a Valuation Survey. That will be based on market value at the time.