Buying a house from a family member.

thelaw7

Hi, I'm a first time buyer and I'm looking for some advice in regards to buying my Grandma's house.

If everyone agrees to the sale of the house it won't be going on the market. I'll just get mortgage and then the money will be split between the rest of the family equally.

The house itself was valued at 65-70K and I would be buying it for 60K.

Looking for some advice into what the process would be?

Thanks!

Yorkie1

Very straightforward. You agree on the sale price, you an your gran each appoint a solicitor (different firms), and the solicitors deal with it from there.

Your solicitor will do the necessary searches etc, and your gran will fill in all the necessary paperwork such as property information form and fixtures / fittings forms.

Both of you sign a contract in readiness for exchange.

When you are all ready for the sale to proceed, the solicitors exchange the contracts, and the completion date is set. You pay 10% deposit to your solicitor for exchange.

On completion, the rest of the money goes to your solicitor from you and the lender, and then it goes off to your gran's solicitor. Then you own the house!

Will your gran be living in the house afterwards? Will you be living in it?

Is your gran likely to need means-tested benefits or care help / residential care? If so, she needs to be aware of 'deprivation of assets'. This means that if she sells the house at an undervalue, and/or gives away any of the sale proceeds, she is likely to be treated as if she had sold it at market value and had received the full sale price.

When you say that the rest of the family will get their money, what precisely do you mean? Is the sale price not going to your gran at all?

Cheeky_Monkey

I get the impression it's a Probate sale

thelaw7

Thanks Yorkie... Ahhh I didn't make it clear - my Grandma died 5 years ago the 'family' (aunts & uncle will get the money from the sale of the house.)

Do you know how much solicitors will be roughly as I said I would cover their solicitors cost as I'm getting it slightly cheaper.

Thanks for your help!