Concessionary purchase help

astanton111

Looking for some advise on this
Me and my partner are hoping to buy her parents house.
They are in a situation where they have no choice but to sell as they went interest only on there mortgage years ago and there term comes to an end dec 2017.
The house has been valued at £500 000 and they still owe £80 000.
They are happy to sell to us for £150 000.
We have been told to look at a Concessionary purchase mortgage as this will mean we will be using the £350 000 equity as a deposit.
We did apply with Halifax mid last year but halfway into the application they declined Us as my partner was on maternity leave.
She goes back to work in July so we have been working on lowering our debts so that when we apply we look better to the lender.
Has anyone ever been in this situation before or have any advise that could help us this time around this will prolly be our last chance to try again before they sell to someone else.
What kind of things will the lender be looking for or require from us
Regards
Adam

AnotherJoe

Has anyone ever been in this situation before
=====

What, buying a £500k house for £150k, being on maternity leave, going back to work in July, having debts and low enough earnings you didnt qualify, parents giving you £350k ... hmm, I'd guess no.

See a broker so you arent locked into one single lender and they can pick the ones most likely to take you on.

I also though dont see why this has to be your "last chance". Why cant parents sell house for £500k, give you £350k, you buy a house for £350k with cash? You then save, get rid of debts, later on sell that buy a bigger house with a mortgage you can afford.

Thrugelmir

Where are your partners parents intending to live?

astanton111

It's not our last chance to buy a property just our last chance to buy this one they have had an offer from some one else but would like to keep the house in the family so are happy to offer it it us but if we get declined again there will be no choice but to sell otherwise the house will be repossessed by the bank at the end of the term.
They will move to bungalow that they have built just down the road
We can afford the payments we earn approx 40 000 a year combined with minimal outgoings. Our currant debt is 5 000 on credit card what will be paid off by the time that we apply also we both owe about 3000 each on 2 cars.

David_White

Not all lenders like this type of purchase however it is doable, even if the parents remain in the property.

Given the amount you're gaining in equity it's worth paying a bit for an experienced broker in the grand scheme of things.

astanton111

We will be using a broker thank we have had a local one recommended by a friend last time we went with her and she was brilliant. It just seemed like the under writers missed that my partner was on maternity as it was her first month.

amnblog

Do mum and dad intend to stay in the property with you?


This makes a big difference.