Selling house for cheaper then actually worth?

Hi,
I bought a house in my name, but my parents gave me the deposit of £200k and I got a mortgage for £350. So the purchase price was £550k. Now my boyfriend wants to buy my parents out at £350k. But will that money just go directly against my mortgage, leaving no cash to my parents?
Thanks

Replies

  • foxy-stoatfoxy-stoat Forumite
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    Hi,
    I bought a house in my name, but my parents gave me the deposit of £200k and I got a mortgage for £350. So the purchase price was £550k. Now my boyfriend wants to buy my parents out at £350k. But will that money just go directly against my mortgage, leaving no cash to my parents?
    Thanks

    How is your boyfriend going to buy out your parents, are they on the mortgage and deeds as well?

    You mean you want to re-mortgage in joint names, you will be allowing your Boyfriend to be jointly liable for the debt AND equity.

    I think you need a Deed of Trust drawn up to protect your parents gifted deposit in the event that your relationship ends or you sell the house in the future and you want to give your parents back the 200 large.

    The only way you are going to give your parents back their £200,000 is to sell the property and buy a place together.
  • kingstreetkingstreet Forumite
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    Hi,
    I bought a house in my name, but my parents gave me the deposit of £200k and I got a mortgage for £350. So the purchase price was £550k. Now my boyfriend wants to buy my parents out at £350k. But will that money just go directly against my mortgage, leaving no cash to my parents?
    Thanks
    Yes. That's right.

    The £350k sale price will be just enough to repay the mortgage.

    Tell us what you are trying to achieve and we'll tell you the right way to approach it.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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