Using parental gift to buy shared ownership house?

pixie1980

My mum was going to give me the deposit for a house but I have a feeling that obtaining mortgage approval might be a problem due to debts and my husband having a low wage.

I have just seen a shared ownership property up for resale (5years old I think). The amount for the stake offered is the same as the amount my Mum was willing to gift as a deposit. Can we use this money to buy the share in the property?

The estate agent is passing my details on to the company who owns the other share of the house but I was just wondering before I speak to them whether this is an acceptable thing to do in these circumstances.

I think we will fit all the other criteria for the property in terms of residency and income so this would be the only sticking point. Any advice greatly appreciated (again!)

pixie1980

Just thought I would update in case anyone searches this, even though no-one replied, to say that the housing charity running this particular scheme have no problems with this as long as you meet all the other eligibility criteria. It is a housing trust shared equity (not the 'help to buy equity loan' as this is a different scheme) property so not quite the same as shared ownership though (so no rent is paid on the charity's share of the house). So I am off to view this property this week and keeping it as my second choice if mortgage interview goes awry tomorrow :-)

Newbiebuyer2016

We are going through a S/O property purchase at the moment.

So are you saying that, for example, the house is £200k, you can buy 25% for £50k but your mother is gifting you £50k so you want to buy the WHOLE share outright?

If you don't pay rent on the other 75% what's the catch? Aren't you just buying a portion of the house outright?