Landlord Contribution Gifted

TimAshmore85

I'm just inquiring as to whether anyone would know if you were able to get a mortgage product where the landlord gifts on completion. For example, you purchase at £200,000 and with a simultaneous exchange and completion Your mortgage amount is £180,000 and the gifted deposit makes up £20,000. The landlord would then receive £180,000 having gifted you £20,000 from the purchase price? That make sense?

Thanks in advance

Guest101

TimAshmore85 wrote: »

I'm just inquiring as to whether anyone would know if you were able to get a mortgage product where the landlord gifts on completion. For example, you purchase at £200,000 and with a simultaneous exchange and completion Your mortgage amount is £180,000 and the gifted deposit makes up £20,000. The landlord would then receive £180,000 having gifted you £20,000 from the purchase price? That make sense?

Thanks in advance

So you have no deposit?


Why are you getting a discount from the LL?


Need more info - sounds dodgy

BlueIsTheColour

Could be a concessionary purchase, this is from Halifax T&C's

"Concessionary purchases can only be agreed for subsequent sales (not new build) in the following circumstances: The property purchase is solely for the applicant(s) to live in as their main residence and the applicant is:

• Purchasing from an immediate family member* at a discounted price (minimum of 10% discount is required) and the vendor must move out on completion

OR

• A sitting tenant purchasing from their landlord (private or council) at a discounted price (excluding Right to Buy)

NB: To qualify, the tenant must have been subject to a tenancy agreement on the property for a minimum of 1 year
* The only relationships permitted for a concessionary purchase are (including vice versa):

• Parent/child
• Siblings/sibling
• Grandparent/grandchild."

eddddy

TimAshmore85 wrote: »

I'm just inquiring as to whether anyone would know if you were able to get a mortgage product where the landlord gifts on completion. For example, you purchase at £200,000 and with a simultaneous exchange and completion Your mortgage amount is £180,000 and the gifted deposit makes up £20,000. The landlord would then receive £180,000 having gifted you £20,000 from the purchase price? That make sense?

Just a thought before you think too far ahead.

Is this something your LL has offered, or is it your 'blue sky thinking'?

BTL landlords are generally pretty hard-nosed investors - i.e. they're in business to make money.

As such, I'm not sure why a BTL LL would offer their tenant a gift of £20k.

The cost of evicting you, estate agency fees, lost rent due to void etc, is not likely to be much more than £5k. So I could understand them offering you a £5k discount/gift, or maybe even £10k - because they like you.


If it's something your LL has actually offered, you need to find out whether £200k is a realistic valuation (as opposed to, say, £175k)

AdrianC

TimAshmore85 wrote: »

I'm just inquiring as to whether anyone would know if you were able to get a mortgage product where the landlord gifts on completion. For example, you purchase at £200,000 and with a simultaneous exchange and completion Your mortgage amount is £180,000 and the gifted deposit makes up £20,000. The landlord would then receive £180,000 having gifted you £20,000 from the purchase price? That make sense?

I presume you're buying a property you currently rent?

That's not relevant - so let's just read "landlord" as "vendor".

And, no, that isn't going to wash. Basically, you're wanting a dodge to get a 100% mortgage by persuading the vendor and both sets of solicitors to lie about the true sale price. Your mortgage lender will want proof of your deposit before agreeing to lend to you.