Buying Parents House

Haydn_26

Hi all, I posted here before covering this topic, I have since spoken to the Mortgage Advice Bureau. Here is my complicated conundrum. My parents want to sell their house to me, its valued at 150k. However my parents have mutually seperated (no intention of divorce). The mortgage left on the property is 60k, they want to sell me the house for £140,000, repay the mortgage of 60k, my dad will take his share of the 80k that remains and leave(40k). My mum on the other hand wants to stay in the property but is unable to mortgage it herself, she wants to gift me her 40k share. So to summarise, the house is valued 150k, they want to sell to me undervalue at 140k and use my mums 40k share as additional gift so I would need a 100k mortgage. My mum is 100% for this arrangement and would live expense free with me and my partner and our son. The MAB told us this was possible, does anyone have any experience in this area? :j

betmunch

MAB told you it was possible, they are right. Not sure what you need adding after they've made a plan for you.

I've done one very similar for some friends of mine recently

amnblog

They are right, but you need to use the right lender.

What makes you think they are not right?

getmore4less

https://forums.moneysavingexpert.com/discussion/5388075

Other critical info like, Debts and income on the old thread.

betmunch

getmore4less wrote: »

https://forums.moneysavingexpert.com/discussion/5388075

Other critical info like, Debts and income on the old thread.

Well that perfectly demonstrates why we mortgage advisors will not name a lender without doing a full fact find.

Having glanced at the additional info in that thread its highly unlikely its going to be possible.

Was it a typo where you put MAB said it was possible? Or is there still more info to come that could make things possible?

Haydn_26

Debts will be cleared before we apply. Income is £21600 per year, some lenders take into account child tax credits, these included will be £24500 per year approx. I got the completely wrong end of the stick on the previous thread. The MAB told me that I can get a mortgage for 100k using my mums share of the house of 40k as a deposit. Because the house has been valued at 140k. She will need to gift this to us.

Thrugelmir

Haydn_26 wrote: »

The MAB told me that I can get a mortgage for 100k using my mums share of the house of 40k as a deposit.

Is your mother "gifting" you the £40k outright without any reservation. Or will she retain an interest in this money?

AnotherJoe

The OP has previously (maybe in another thread) stated that the mother will retain the right to live in the property. Which as I said earlier seems to be storing up a shed load of potential trouble and heartache for the future.

The OP might as well nail himself to the front door as he'll never be able to move anywhere else.

Haydn_26

Absolutely. She is not treating it as a loan. Although Nationwide do accept family gifts where repayment is due only on sale of the property. This is states on their gifted deposit letter.