Can I buy mum's house for less than sale value?

Mimmy

Hi all, for the sake of simplicity, I'll use easy figures to ask my question:

My mum bought her house for £100,000 and has paid £50,000 towards it so far, so £50,000 left to pay. She now wants to move out with her partner and get a new property with him. She is happy for me to take over the remainder of the house so that it becomes mine (though she'll still have a 50% stake since she's paid off 50k).

Is it possible for me to get a mortgage of the remaining 50k and buy her out of her share of the house, so that I can fund the rest of the house, and she can put it towards her new home?

Thanks in advance.

Thrugelmir

Your mother has £50k of equity in the property. If she wants some of this equity to fund her new purchase. Then you will need to borrow more than £50k to buy her out and replace the current mortgage. In the process her share of the property will therefore drop below 50%.

caprikid1

Sounds like


She wants you to get a 50K mortgage so the mother can get out the equity and then to leave you with the other 50K mortgage.


This equates to a 100% mortgage however you do it ??


This sounds not workable to me.

foxy-stoat

Mimmy wrote: »

Hi all, for the sake of simplicity, I'll use easy figures to ask my question:

My mum bought her house for £100,000 and has paid £50,000 towards it so far, so £50,000 left to pay. She now wants to move out with her partner and get a new property with him. She is happy for me to take over the remainder of the house so that it becomes mine (though she'll still have a 50% stake since she's paid off 50k).

Is it possible for me to get a mortgage of the remaining 50k and buy her out of her share of the house, so that I can fund the rest of the house, and she can put it towards her new home?

Thanks in advance.

If she wants £50K out of it and you can buy the house for £100K then its possible, if its worth £125+ say. Some lenders will accept gifted equity as a deposit.

She wont have any financial interest though.

amnblog

Mum owes £50,000 of the house, the Bank owes the rest.

You could borrow £75,000 to pay off her mortgage and give her £25,000 surplus to put in the property with her new Partner.

She can only take her full £50,000 if she sells.

Plan B

Under a specialist scheme.

She sells, lets you have use of £10,000 with which you borrow £90,000 to buy at £100,000.

After 3 years she can get her £10,000 back with interest, she has had her £50,000 and you own your own home.

(You will need a good broker to sort this for you)