Mortgage advice please - re gifted deposits & other stuff

jennduck

Foxy-Stoat wrote: »

So your parents are buying you a property and you will be paying them rent to live there. Sounds like an regulated Buy To Let is what is required.

Get them to leave it to you in their Will or you can buy it off them when you have saved up enough.

Would it still be regulated but to let if they don't own the whole property though? And how does them leaving it to us or us buying it off them help us now? Thanks

jennduck

We now know for sure that we can't get a mortgage for the £25k (even with out own 10% deposit) if my parents' names are on the deeds.

If they 'gift' us the money will they have any right to it once the letter has been signed? If something happens to us, will they get it back? Could we pay them rent on a casual basis?

None of us realised how complicated this would be. Thanks so much everyone for your input so far.

Foxy-Stoat_3

jennduck wrote: »

Would it still be regulated but to let if they don't own the whole property though? And how does them leaving it to us or us buying it off them help us now? Thanks

Apart from living in the property that you want to live in now?

You will be paying the rent to them instead of paying the mortgage and rent, a mortgage which in your current situation you wont get.

Them leaving it to you in their Will will help you and your families future in the event that they die before you will be in a better position financially.

If you manage to secure a mortgage on it for the whole amount in a few years then its all good. They can choose to let you pay the market value or just the mortgage amount when they bought it.

Foxy-Stoat_3

jennduck wrote: »

We now know for sure that we can't get a mortgage for the £25k (even with out own 10% deposit) if my parents' names are on the deeds.

If they 'gift' us the money will they have any right to it once the letter has been signed? If something happens to us, will they get it back? Could we pay them rent on a casual basis?

None of us realised how complicated this would be. Thanks so much everyone for your input so far.

The lender will only consider this a goer if they gift the money to you. You can choose to leave the house to them if you wish, but I would of though you would like to put your other half and kids roof a higher priority.

You can pay them whatever you like after you complete on the mortgage, if you can afford to.

Looks like you want to buy a house for £113,500 with a mortgage for £25,000 with a £2,500 deposit and your parents paying the other £86,000. If they want a BTL mortgage then only need to put down 25% of the purchase price (£28,375 plus fees).