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Selling to family gift deposit?
Whitey8449
Posts: 2 Newbie
I wish to sell my house to my brother. I still have a mortgage on the house for 60k. All I want is rid of the mortgage ties. He has suggested he purchases the property for its market value of of 85k and as a family member i gift deposit him the middle 25k. So he basically just assumes the mortgage. Can anyone shed any light on the legality of this and if the 25k will actually have to be available? Thanks
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Comments
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He cannot assume the mortgage.
He will need to purchase the property from you and arrange a mortgage of his own, which his solicitor will pay to yours. Your solicitor will repay your mortgage.
It is possible to do a "concessionary purchase" which means a price reduction can be used as your deposit when purchasing from a family member.
You cannot continue to live in the property!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 -
He can't assume(take over?) the mortgage he'll have to get his own.
Gifted deposits are legal and you don't need the cash. It gifted equity technically.
Do you really want to give your brother £25k with no expectation of repayment?:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
Yes I'm aware he will need to get a mortgage for the 60k to pay off my mortgage. Can the solicitors still make out that he's purchasing the property for 85k with a gifted deposit of 25 so he only needs to borrow 60?
I am more than happy for this to happen if it's possible?0 -
That would be you selling for £60k when the property is valued at £85k by the lender's surveyor.kingstreet wrote: »It is possible to do a "concessionary purchase" which means a price reduction can be used as your deposit when purchasing from a family member
The gifted equity is your relative's deposit.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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