First Time Buyer - different circumstances

4659ga

Hi all,
Wondering if you wise people can help.
I'm wanting to purchase a property I already own 30% of. My parent gifted me their share of my grandparents property and my grandfather owns the other 70% between them.
If I want to get a mortgage for that 70%, would I need to have a deposit still, or would my 30% count as that inital fee?
If not, do I need at least 5% of the full value of the house, or 5% of the mortgage?

Sorry if it's all very obvious, however I'm a complete novice at this sort of thing!

Astraeus

I might be pre-supposing a family dynamic that doesn't exist but would your grandfather not be prepared to gift the remaining 70% to you?

If you do intend to purchase from your grandfather at true market value, you will need a mortgage to enable you to do so and the 30% stake you have in the property should suffice for a 'deposit', in that the lender will be satisfied that it is not entirely at risk and that you have skin in the game.

4659ga

Thank you for your insight, much appreciated.

And yes, the 70% is earmarked for other members of the family - my uncles, aunts etc. I benefit from being my parents only child and then wanting to help me out.

agrinnall

Just to be clear, your grandfather had already gifted 30% of the property to your parents who in turn have gifted that share to you, and the remaining 70% is still held by your grandfather but is to be distributed to other family members once you complete the purchase?

Where will your grandfather live once the sale has gone through? Does he own another property? Has he taken advice on possible deprivation of assets?

4659ga

He is currently in a nursing home with Alzheimer's - Much of the finances were sorted many years ago to ensure that he is comfortable in his old age, is presuming his state would deteriorate (which it has) - so I think it's sorted. I was just 17 at the time and cared little to take an interest in how they were sorting their (my now passed grandmother) affairs out. His comfort is the main priority.

Yes, they've just passed their share onto myself as they already own multiple properties and wanted to help me out.

marksoton

4659ga wrote: »

And yes, the 70% is earmarked for other members of the family - my uncles, aunts etc. I benefit from being my parents only child and then wanting to help me out.

I'd say you need to take a bit of legal advice. This could get complicated and you need to make sure all the paperwork is in order. Especially with a lender becoming involved.