Buying parents house with a 'gifted deposit'?

lal205

Hiya,




So my partners Mum wants to sell us her house, to help us she will give us the deposit, the only problem is she wont have the money until the house sale goes through. Is this possible?


I did a little digging online and found that if we were to do this we would need a signed letter drawn up by her solicitor to say that she is gifting us the deposit. Then we would use this as proof of our deposit.
Will this work? Is it possible?
Also, the amount would be just over 20% of the house value, would this help us get accepted for a mortgage and also obtain better rates?
Any advice is welcome, thanks!

Flugelhorn

I don't know the whole ins and outs of how this works but won't the mortgage company just see it as you buying the house at a big discount and not having a deposit?

lal205

I hope not. His Mum was made aware of this because her friends son did the same for his kid.
We are going to see a solicitor in a few weeks, just wanted to try get information on it beforehand, am very impatient and needed to find something out soon as I could lol.

GMS

Does she reside in the house currently? Will she continue to do so after completion?

lal205

She does at the moment but it is currently up for sale and she will be moving out in the new year to rent so it will stand empty until its sold.

amnblog

This is known as a concessionary purchase and a half a dozen lenders will consider it.


The difference between the purchase price and the value is effectively the deposit. Some lenders will ask you to contribute 5% cash.


A case for a mortgage broker.

lal205

Thank you amnblog! Now at least I know it is possible. I will make an appointment with a mortgage broker then and see what the next step would be!


Thanks again