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strange FTB question

I'm in a bit of a weird situation. I currently live in the house I want to buy. The owner a family friend and I have agreed a price (in theory). The weird part is that the house is valued 15% higher than i will be paying. I have a deposit etc however if I approach the bank will they cosier the mortgage to already be an 85% mortgage. Then in theory could I not use my savings and maybe remodel some of the house? I'm confused as to what would be the best plan

Comments

  • DevCoder
    DevCoder Posts: 3,362 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 6 June 2015 at 5:00PM
    The lender will base the LTV on the accepted offer price or their valuation, whichever is lower. Obviously if their valuation is lower than the confirmed price then they won't be offering anything.

    So if you agreed £X it doesnt matter if you apply for a mortgage at X that the valuation is Y (15% more). X would be considered.
  • Is the owner your landlord - do you have an AST - in which case a concessionary sale may possible with a couple of lenders.
    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 ForumTeam
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