Buying the house we live in from parents

whacks

Hi,

my wife and I currently live in a house owned by my wife's parents. They purchased the house as we moved to new jobs across counties but the intention was for us to take a mortgage on it and pay them back when we had settled.

After talking to them last night they have agreed to gift us 25% of the deposit. The idea is that this will come out of the house when purchasing it.

House value and sale price 160k, we obtain a mortgage for 120k and they gift us the 40k difference to use as a deposit.

Is this a viable option to proceed with?

Thanks

amnblog

It is.

A key point is if they are living there, or will move in with you.

Consultant a competent mortgage broker.

getmore4less

Do they need the money?

If not they could act as your lender you paying them back.

whacks

Parents have not and will not be living there, they have their own house. Will look for a broker to discuss options. My main concern was that the deposit was tied up in the house already and if it could be used for that purpose.

Don't think they need the money but with two other daughters I doubt they could do the same for all three children so at least this way they can also provide support for deposits for them if needed.

kingstreet

It's a concessionary purchase, or gifted equity.

Your broker will know which lenders to approach and which to avoid. Some high street lenders still in the pool, so no impact on rates.