Buying parents home with no deposit?

holly_hobby

Right, you don't need a physical deposit if you are buying your parents home from them (at undervalue) - as this is classed as a family discounted purchase.

And thats how it should be presented to the lender - an experienced (or even relatively new TBH) will be fully familiar with the concept.

Obv your shall then have to meet the lenders status and affordability requirements.

Hope this helps

Holly

fatmcgav

holly_hobby wrote: »

Right, you don't need a physical deposit if you are buying your parents home from them (at undervalue) - as this is classed as a family discounted purchase.

And thats how it should be presented to the lender - an experienced (or even relatively new TBH) will be fully familiar with the concept.

Obv your shall then have to meet the lenders status and affordability requirements.

Hope this helps

Holly

Holly

Cheers for the info, that ties in with a couple of other posts I've read...

Cheers
Gav

holly_hobby

holly_hobby wrote: »

an experienced (or even relatively new TBH) will be fully familiar with the concept.

Oops .... this should read ...

"an experienced mortgage broker (or even relatively new TBH) will be fully familiar with the concept".

Glad you found the post useful.

H x

TrickyDicky101

Is your parents' house currently mortgage free? The sale to you does sound as if it will rely on your parents either having £20k of ready cash or the equivalent amount of unencumbered equity in the property itself (and be willing to gift you such an amount).

fatmcgav

TrickyDicky101 wrote: »

Is your parents' house currently mortgage free? The sale to you does sound as if it will rely on your parents either having £20k of ready cash or the equivalent amount of unencumbered equity in the property itself (and be willing to gift you such an amount).

They've got about 50k left on the mortgage, and will be using some of the equity to purchase the next place... However they don't seem averse to gifting it to us...

Cheers
Gav

holly_hobby

The mge app will be based on a pch price of 180k and reqd mge of 160k (assuming it values up ok etc) ie 160/180.

Hope this helps

Holly x

fatmcgav

holly_hobby wrote: »

The mge app will be based on a pch price of 180k and reqd mge of 160k (assuming it values up ok etc) ie 160/180.

Hope this helps

Holly x

Holly

Makes sense... N basically parents will get 160 - whatever is outstanding on their mortgage?

Cheers
Gav

holly_hobby

Yep, their solicitor will receive 160k from yours, who will then redeem their os mge (which may include admin/exit costs), and forward them any residual balance.

Hope this helps

Holly