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Gifting Deposit?
LianeB
Posts: 77 Forumite
I currently rent from my dad (pay his mortgage) and rather than save money we have ploughed the money back into the house as it has needed work doing to it.
Me and my hubby want to buy the house and dad wants us to buy it from him. He would sell it to us for a price way below the valuation as we have already put so much money into the house. The problem being we have no cash for a deposit. I have been told he can 'gift' us the deposit for example.
sell house for £200k but only want £150k from us so could that missing 50k be the deposit? or do we need to have that 50k in cash? my dad doesn't have the cash as it is all tied in the house.
Thanks for any advice
Me and my hubby want to buy the house and dad wants us to buy it from him. He would sell it to us for a price way below the valuation as we have already put so much money into the house. The problem being we have no cash for a deposit. I have been told he can 'gift' us the deposit for example.
sell house for £200k but only want £150k from us so could that missing 50k be the deposit? or do we need to have that 50k in cash? my dad doesn't have the cash as it is all tied in the house.
Thanks for any advice
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Comments
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Not sure if it is helpful
There have been a good number of threads here about the same. Have a search - it should answer all the question.“Don't raise your voice, improve your argument." - Desmond Tutu
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Does your father still live in the house?0
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This is a concessionary purchase and it's fine. You will find some lenders don't accept it. A whole market broker will help establish the correct lender option for you.I currently rent from my dad (pay his mortgage) and rather than save money we have ploughed the money back into the house as it has needed work doing to it.
Me and my hubby want to buy the house and dad wants us to buy it from him. He would sell it to us for a price way below the valuation as we have already put so much money into the house. The problem being we have no cash for a deposit. I have been told he can 'gift' us the deposit for example.
sell house for £200k but only want £150k from us so could that missing 50k be the deposit? or do we need to have that 50k in cash? my dad doesn't have the cash as it is all tied in the house.
Thanks for any advice
xylophone asks a good question. You will have problems if he resides in the property with you and intends to continue to do so...I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thanks for the replies.
My dad lives in another house, so don't think this will be an issue. Do you know of any mortgage brokers in Liverpool? Or how I can find a reputable one?
Thanks0 -
Ask friends and relatives for a recommendation.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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You will have difficulties finding a lender, however, I done this with NatWest - pretty good rates and very professional service as you'd expect.Thanks for the replies.
My dad lives in another house, so don't think this will be an issue. Do you know of any mortgage brokers in Liverpool? Or how I can find a reputable one?
ThanksBargain:
Anything a customer thinks a store is losing money on0 -
Stamp Duty is £1,500 not £2,000.
More spam as well.
"Share A Mortgage" features in just about every one of your posts.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Hi King Street. I am afraid not Spam just sound advice. The consideration on the title transfer must be the full purchase price not the amount sold under value.
You must be careful on this point as it is a common mistake and it can be costly to get it wrong.0 -
my dad doesn't have the cash as it is all tied in the house.
warning
you say your father does not have the cash and you also say he does not live there
has he therefore factored in how much he will have to pay in capital gains tax?
CGT applies to the sale or gift of a property which is not lived in as a the main home. Where the property is gifted to a connected person (eg a family member) then CGT will be calculated on the taxable gain which is the difference between the open market value (not what you pay him) and its original purchase price paid by father. Father will then be liable for CGT at either 18% and/or 28% on this "taxable gain"0 -
I think you'll find the consideration on a concessionary purchase is the actual amount changing hands, not the value of the property.Realopinion wrote: »Hi King Street. I am afraid not Spam just sound advice. The consideration on the title transfer must be the full purchase price not the amount sold under value.
You must be careful on this point as it is a common mistake and it can be costly to get it wrong.
As I said, your continual mention of "Share A Mortgage" is the spam.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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