First time buyers from family

Beansy30

Hi

we are first time buyers and buying a house owned by parents. It has been valued at £200,000 but they are wanting £140,000.

I have £11k car loan to pay off and £4k credit card loan to pay off. I earn £30,000 and my partner is self employed earning £14,000.

We have no deposit but have been told the "extra" £60k value of the house could be used for that.

Just wondered if anyone had any advice before we go to banks and brokers?

Thanks

L

kingstreet

You can "concessionary purchase" the property from them for a price under the true value, subject to the surveyor for the lender agreeing with the valuation.

However, your debt repayment is another issue. You would have to agree to purchase the property for a higher price than the £140k they want. You would have to complete and all them to receive the funds from their solicitor.

Then, they would have to pay to you the extra money for you to repay your debts.

You would therefore have to be able to afford the new mortgage and the debt, as you will be unable to claim it is being repaid on or before completion.

Beansy30

So we would be looking at a mortgage for £155k to cover everything or to reduce the amount we give his parents to cover the debt?

Will the bank not allow us to have a mortgage and pay the debt off at the same time?

kingstreet

You would concessionary purchase the property for £155,000.

You would get a mortgage for that, less any deposit you want/have to put down yourself.

Once completion is over and the vendor has their money, they would give you back the £15k.

You cannot borrow money to pay your debts, no.