Buying from In-laws

susanne99

hi,
Advised to move to this thread..


Ok i live in Scotland..

My husband and i have been living in my inlaws (husbands parents) house for 4 years, they have now decided to let us buy the house buy gifting us equity to help.
My husband has very bed credit so it not able to go on the mortgage application. he does not want to be on the application or on the deeds.
the house is worth £90,000 i can get a mortgage for £50,000 so they are willing to gift £40,000, no issue.
i put an application into the halifax, they were advised everything over the phone about it being my inlaws etc. i was accepted in principle.
yesterday put the full application in with all documentation, again i was accepted. A few hours later i received a call to say they couldnt go through with application as the gift of equity is from my inlaws! as they are not blood related to me.
i dont understand how they can now withdraw after everything was fully accepted including being told it was from my inlaws.
on their site the gifting states they will accept from family, nothing about how close a connection.
i have seen people getting gifts from friends etc as long as an official letter from the gifter is sent advising it is a gift and does not need to be paid back.
what can i do here? are there any companies that will allow this type of gift?

thanks

steeeb

I can't add much specifically to this, I'm sure others can.

Perhaps seeing an independent all-of-market broker would be able to find a lender that would do this (and even get you a better rate).

An alternative might be for the inlaws to give a gift of the money to your husband (be careful of inheritance tax if they die within 7 years) and then him gift it to you? I'm not sure if the lender would need proof of where the money came from relating to your husband and then it being a gift then causing problems - but something to think about perhaps.

GMS

Non relative gift is an issue for many lenders.

What is the poor credit your husband has? CCJ's, defaults, IVA, bankruptcy? Dates and amounts?

FYI monies being gifted to husband from parents then to you will cause further issues as he would be residing in the property and not party to the mortgage.

It would be beneficial to speak to a broker for this.

Senior_Paper_Monitor

The bad news is I would have expected Halifax to be the most likely to have accepted this - they are generally good at source of deposit, resident conflicts, ditching the spouse and accept concessionary sale.


Don't even think about going Steeb's route - a guaranteed rejection there.


Get a broker to have this pre-presented for approval (I suspect this route might have got through Halifax - OBVIOUSLY NOT BASED ON KINGSTREET'S LOOK UP BELOW) via their BDM if they can find a runner for it.

kingstreet

Halifax criteria on concessionary purchase is clear;-

Concessionary purchases can only be agreed for subsequent sales (not new build) in the following circumstances:

The property purchase is solely for the applicant(s) to live in as their main residence and the applicant is:

Purchasing from an immediate family member* at a discounted price (minimum of 10% discount is required) and the vendor must move out on completion

OR

A sitting tenant purchasing from their landlord (private or council) at a discounted price (excluding Right to Buy)

NB: To qualify, the tenant must have been subject to a tenancy agreement on the property for a minimum of 1 year

* The only relationships permitted for a concessionary purchase are (including vice versa):

Parent/child
Siblings/sibling
Grandparent/grandchild.

All family purchase transactions must provide vacant possession (the vendor must be moving out) on completion. The discount on the purchase price must be a minimum of 10% of the market value and must be a genuine discount (must not be subject to any future repayment, clawback or retained interest terms)

A valuation must be instructed in all cases including properties in Scotland (retypes are not permitted).

Thrugelmir

susanne99 wrote: »

My husband has very bed credit so it not able to go on the mortgage application.

Then being gifted equity is not a sensible idea. As could be pursued by creditors.

amnblog

You can potentially get this placed with both of you on the application (husband's credit can be poor - but not ridiculous).


You would need to put in £4,500 cash yourselves.