can parents help pay towards home puschase

bomber2

iam looking to buy a second property without a morgage,but i wont have enough funds,can my parents who have savings contribute £20000-£30000 towards the cost of the property,iam single and they are retired.

kingstreet

Do you mean "can they contribute to the purchase price so I won't need a mortgage?" as the title and post contradict each other.

If they want to give you money to buy a property, that's entirely between you and no-one else has any involvement.

bomber2

sorry,i meant paying a lump on purchase of the property,not a monthly contribution to a mortgage.

minimike2

Yes they can contribute. It will need to be either declared as a gift, or if it is a loan you will need to account for that on the application and will also limit your lender options.

Also consider the stamp duty surcharge you will have to pay.

bomber2

havent moved or bought house for 10 years,never had anything to do with stamp duty.will have to look into it.

jennifernil

bomber2 wrote: »

iam looking to buy a second property without a morgage,but i wont have enough funds,can my parents who have savings contribute £20000-£30000 towards the cost of the property,iam single and they are retired.

As there will then be no bank mortgage involved, this is only between you and them. Nobody else will be interested
.
To protect them, they could place a charge on the property, so in effect they would be your mortgage lender. Get a solicitor to do this, and draw up a simple agreement for a repayment plan if that s what you intend to do.

I have my daughter's mortgage on her BTL and have done exactly that, the cost for the solicitor was £180 4 years back.

She repays me £500 per month, capital and interest, we have agreed a mutually beneficial interest rate, and the interest she pays me is declared by me for tax purposes, and claimed by her as an expense of letting the property.