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Can I give me house to my sister?
Jacknew159
Posts: 4 Newbie
Hello all!
I need a bit of advice. So at the minute my sister lives with myself and my girlfriend. We bought our house in Oct 2016, but we where very tourn between this house and a new build, but due to a few reasons ended up buying the non-new build house. Now, we regret it very much and really would like to live in a new build.
My sister and her boyfriend are looking to buy a house and really like the one we live in now, so my questions is what is the best way to go about it? We arent fussed about them owing me money if they dont pay as much deposit or what ever, we just want to know what is the best way to go about us buying a new build house under the help to buy scheme and them buying our current house? I wish it was just as easy enough as we give them this house and they give us the deposit for the new build, but I have a feeling its not going to be
THANKS FOR YOUR HELP!!
Just in case it helps, my mortgage was fone through Barclays.
I need a bit of advice. So at the minute my sister lives with myself and my girlfriend. We bought our house in Oct 2016, but we where very tourn between this house and a new build, but due to a few reasons ended up buying the non-new build house. Now, we regret it very much and really would like to live in a new build.
My sister and her boyfriend are looking to buy a house and really like the one we live in now, so my questions is what is the best way to go about it? We arent fussed about them owing me money if they dont pay as much deposit or what ever, we just want to know what is the best way to go about us buying a new build house under the help to buy scheme and them buying our current house? I wish it was just as easy enough as we give them this house and they give us the deposit for the new build, but I have a feeling its not going to be
THANKS FOR YOUR HELP!!Just in case it helps, my mortgage was fone through Barclays.
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Comments
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You agree a price.
They find a mortgage.
They do the bare minimum legal work to satisfy their lender.
Everything completes as quickly as possible.
Job jobbed.0 -
But they would need an £8000 depsoit to get the mortgage, but they only have £5000 which is what I need for the deposit on the new build0
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It is no different from a complete stranger buying your house.
Your sister will have to buy your house.
You will have to buy a new build.
She will need to apply for a mortgage, get approval, have the surveys done etc, get a solicitor.
You will need to get a solicitor to sell your house to your sister and to buy your new build.
The fact it is your sister makes no difference whatsoever to the process.
If she can't get a mortgage/doesn't have enough deposit, then that's the end of that idea and you'll have to put your house on the market and sell to a stranger.0 -
You're getting confused between the "deposit" for securing a deal, and the "deposit" for your proportion of the purchase price. They're two different things.Jacknew159 wrote: »But they would need an £8000 depsoit to get the mortgage, but they only have £5000 which is what I need for the deposit on the new build
You need to put down a £5,000 initial payment to secure your new build.
Their lender will only lend them, presumably, 95% of the purchase price - so £152,000 on a £160,000 purchase. 95% LtV - loan to value. They need to have the other 5% - £8,000.
If you say "Well, the purchase price is only £157,000", they can still only borrow 95% of that - £149,150 - so would need to raise the other 5% - £7,850 - themselves.
The lender's criteria - both in terms of affordability and for the loan to value - don't change based on whether the buyer knows the vendor or not. They really couldn't care less about that.0 -
How about a house swap? I'm not an expert but I've read that thats a thing? If she was to buy the new build can we then swap houses?0
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If there are no mortgage lenders to object...Jacknew159 wrote: »How about a house swap? I'm not an expert but I've read that thats a thing? If she was to buy the new build can we then swap houses?0 -
Jacknew159 wrote: »How about a house swap? I'm not an expert but I've read that thats a thing? If she was to buy the new build can we then swap houses?
No.
You don't own the house, right now you own it alongside the bank, as they lent you a chunk of money for it.
Your sister needs to satisfy the bank that SHE deserves a chunk of money from them to own the house.
House swaps are exactly the same as buying and selling, only less complicated as there's no 'chain' it doesn't make any financial or legal difference to it.0 -
Isn't the help to buy scheme for first time buyers?0
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no, the HTB Equity Loan scheme is available to anyone buying a new build, provided that at the end of the day they only own one property (ie they must sell their existing home)Norman_Castle wrote: »Isn't the help to buy scheme for first time buyers?
https://www.helptobuy.gov.uk/equity-loan/eligibility/
you may be getting confused with the HTB ISA as that is indeed restricted to first time buyers only
https://www.helptobuy.gov.uk/help-to-buy-isa/who-is-eligible/0
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