Selling house for cheaper then actually worth? 29 February 2016 at 1:50PM in Mortgages & endowments 2 replies 398 views

Charlieg1946

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

foxy-stoat

Charlieg1946 wrote: »

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.

kingstreet

Charlieg1946 wrote: »

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.