Buying parents home with no deposit?

fatmcgav

Evening all

I've been reading a few threads but thought it probably easiest to ask my question.. :-)

My parents are currently looking at relocating to the country with my brother and his gf. The idea came up today of me and my fiance buying their current house, however the challenge we've got is the deposit... We haven't really got any as yet,due to renting, etc.

The property hasn't been valued recently, but a couple of properties on the street have recently sold for around £180k... So that's the ball park we're looking at...
Working on an average deposit required of 10%, we would need £18k.
Is it valid for us to buy the property for £160k and use the rest of the property value as deposit?

Any gotchas, blocks or better ways?

Comments welcome, and thanks in response for any replies.

Regards
Gavin

Thrugelmir

Do your parents want to gift you the deposit?

fatmcgav

Thrugelmir wrote: »

Do your parents want to gift you the deposit?

That was one of the ideas, yeh... Obviously need to be sure its all legit etc...

Errata

Do your parents have £20k in ready cash to give you for the deposit?

fatmcgav

Errata wrote: »

Do your parents have £20k in ready cash to give you for the deposit?

I don't think so, but will find out... Does it make a difference to the process?

Thrugelmir

Can you obtain a 90% LTV mortgage?

There's more to be considered than just the deposit.

fatmcgav

Thrugelmir wrote: »

Can you obtain a 90% LTV mortgage?

There's more to be considered than just the deposit.

Haven't started looking at the whole application process as yet, however I'm not aware of a reason why we shouldn't be able to.
We have a combined income of just over 50k, credit records are both clear with some outstanding borrowing...

Cheers
Gavin

Annisele

fatmcgav wrote: »

credit records are both clear with some outstanding borrowing...

"Some" covers quite a variety. £50 on your credit card to be repaid by the end of the month isn't an issue. £50k is a dealstopper!

fatmcgav

Annisele wrote: »

"Some" covers quite a variety. £50 on your credit card to be repaid by the end of the month isn't an issue. £50k is a dealstopper!

I've got about 10k left on a loan with 3 years to run, plus a 3yr PCP car at 16k and a small 500 overdraft...
Gf has about 4k left on a loan with about 18 months to run...

Cheers
Gav

Errata

fatmcgav wrote: »

I don't think so, but will find out... Does it make a difference to the process?

Just a bit, because if they haven't got it to give you, you can't use it as a deposit.

Thrugelmir

fatmcgav wrote: »

I've got about 10k left on a loan with 3 years to run, plus a 3yr PCP car at 16k and a small 500 overdraft...
Gf has about 4k left on a loan with about 18 months to run...

That's more than "some" from a lenders perspective.

Do you regularly use the overdraft?

Can you afford the mortgage?