Buying a house for my mum...

sparkychris

Evening team!

In a nutshell... mum lives in a house valued at 140 000, she's seen a flat she wants valued at 90 000. She owes about 28 on her house.

She's just put her house on the market to buy this flat but I've a feeling it will get snapped up pretty quickly.

I live in a rented house, earn about 30k and have about ten grand in the bank.

My credit score, I imagine, is good. I have no loans or credit card debt.

I had a mortgage once but sold my house about 10 years ago.

How would it work if I were to buy this flat for mum, to secure it, and transfer it into her name when she sold her house?

I would not want to be out of pocket at the end of it and she would want to live mortgage/rent free.

This flat is on the same street as her sister and it would make her immeasurably happy to live there....

Help me out, team!

Sorry.... Duplicate thread, please delete one, admins!

eddddy

That would involve huge complexity and cost - including mortgage application fees, valuation fees, early redemption fees etc, and arguably misleading the mortgage company by saying you want to live in the property.

I'd try some different options first, including:

- Your mum says something like "I'll offer the full £90k asking price if you give me up to 28 days to get an offer on my current house"

- Or even "I'll offer £92k... if you wait" - it's probably still cheaper overall than your plan.

- Failing that your mum can look into bridging loans. But they can be expensive.


Or if you want to play very dirty (and risky) - you can get an offer accepted on the flat as a delaying tactic, telling the EA/seller you're buying with a mortgage. Then proceed slowly with the purchase.

In the meantime, your mum gets an offer on her house. Then you say "I can't get a mortgage, so my mum's going to step in and take over the purchase as a cash buyer, subject to the sale of her house."

But that's a bit immoral, and if the EA/seller susses what you're doing, they might be extremely unhappy.

AnotherJoe

Mum can also be amenable to low offers from suitable buyers.

sparkychris

Thanks chaps....

I wouldn't want to do anything shady or immoral. She's put her house on the market with the same estate agents that are selling the flat so ill speak to them tomorrow...

Mum gets intimidated and flustered by people in suits so i'll see what they suggest on her behalf.

I do wonder why they didn't suggest she put an offer forward for the flat - Am assuming it's bad form if you've had no offers for your property yet?

G_M

Has she any other savings/investments? How much?
Is £10K the max you have that you could lend her?
Could she increase her current mortgage? by how much?
Could she take out a 0% credit card? what credit limit?
Could you take out a 0% credit card? what credit limit?
Any other family who could give her a short term loan? How much

By combining some/all of the above, could she hit the £90K needed for the flat?

If not, add in a bank bridging loan (more expensive)?

xylophone

Her house is on the market and she is willing to pay the full asking price for the flat - why doesn't she ask the EA to approach the vendor on her behalf?