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Buying house from the in laws.
Daunieo
Posts: 1 Newbie
Hello,
My in laws have emigrated a few years ago and my husband and I have been living the their old house for 2years paying rent.
They have offered to sell us the house at half of the value. As a approx guess it is valued at 140000 they will only ask us for 70,000.
My question is, how does this effect mortgages and deposits? Will I still need 5/10% deposit of the full price or the mortgage? I'm not sure how this works. Will I need a deposit at all?
I'm a complete newbie to all of this and all the websites seemed to be tailored to people borrowing the total cost. I'm Just after a bit of advice before start speaking to solicitors and what not.
Thanks!!
My in laws have emigrated a few years ago and my husband and I have been living the their old house for 2years paying rent.
They have offered to sell us the house at half of the value. As a approx guess it is valued at 140000 they will only ask us for 70,000.
My question is, how does this effect mortgages and deposits? Will I still need 5/10% deposit of the full price or the mortgage? I'm not sure how this works. Will I need a deposit at all?
I'm a complete newbie to all of this and all the websites seemed to be tailored to people borrowing the total cost. I'm Just after a bit of advice before start speaking to solicitors and what not.
Thanks!!
0
Comments
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Do they need the capital or could they manage being your lender and you just paying them.
Taxation in their place of residence would need to be taken into account.0 -
There are a few lenders who will take the price reduction as your deposit in what's known as a concessionary purchase.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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this can be done but you will need a broker in order to find the right lender and handle this correctly.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
There is quite common and generally we have no issue lending on such terms. Unlikely the discount can be regarded as deposit instead the lending will be based on your purchase price and not the actual value of the property.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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There is quite common and generally we have no issue lending on such terms. Unlikely the discount can be regarded as deposit instead the lending will be based on your purchase price and not the actual value of the property.
Who has 'no issue lenders on such terms'?
The discount can be regarded as deposit with at least half a dozen lenders (some require 5% buyers own cash).I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
Plenty of lenders who will consider the discount as the deposit !
Need to be careful about legal relationship (married - not cohabiting - for some of them ... as sale must be a family concession) but certainly do-able.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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