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Father offered to buy my house so I don't lose dream home.
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Twisted_Spirit
Posts: 67 Forumite
We accepted an offer on our house and then found a perfect house for us.
Buyer's sale fell through and put our purchase at risk.
Father offered to buy our house so our purchase can go through.
He would then sell it to our Buyer when her sale goes through.
The problems we have now run into is stamp duty on 2nd home would be payable plus 2 lots of solicitors fees and other costs are making this an expensive option.
Are there any ways around this which would make this temporary purchase more financially viable?
Thanks
Buyer's sale fell through and put our purchase at risk.
Father offered to buy our house so our purchase can go through.
He would then sell it to our Buyer when her sale goes through.
The problems we have now run into is stamp duty on 2nd home would be payable plus 2 lots of solicitors fees and other costs are making this an expensive option.
Are there any ways around this which would make this temporary purchase more financially viable?
Thanks
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Comments
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Twisted_Spirit wrote: »We accepted an offer on our house and then found a perfect house for us.
Buyer's sale fell through and put our purchase at risk.
Father offered to buy our house so our purchase can go through.
He would then sell it to our Buyer when her sale goes through.
The problems we have now run into is stamp duty on 2nd home would be payable plus 2 lots of solicitors fees and other costs are making this an expensive option.
Are there any ways around this which would make this temporary purchase more financially viable?
He lends or gifts you the money.
You would still have to pay the 3% SDLT hike, because you would be owning two properties - but when you sell your original one, you can reclaim that extra.0 -
As AdrianC says, your father could effectively give you a bridging loan.
Assuming you currently have a mortgage, and will have a mortgage for the new place...
The loan will need to be enough to let you pay off your current mortgage, and have enough deposit for the new house. (i.e. it might need to be the full value of your current house.)
The risks with any bridging loan include- your buyer pulls out (and it takes a while to find another one, and perhaps prices drop in the meantime.)
- the survey etc on your current house shows up big problems, and you have to sell for much less than you expected.
But if you and father are happy to take those risks, I guess it's fine. (And your solicitor will need to check that your new mortgage lender is happy.)0 -
Be less financial risk if he buys your buyer's home.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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Be less financial risk if he buys your buyer's home.
I would say the opposite is true .
What if it's difficult to sell and is back on the market because someone changed their mind ?
This also brings up same problems as buying the OP's house -ie the extra buying and selling fees, plus the stamp duty which the father would be unable to reclaim as he probably has a house and won't be replacing his home.0 -
If the buyer needs to get a mortgage, will she struggle if your father has owned the house for less than 6 months?
(I might have invented this, just vaguely remember reading something like this once)0 -
Yes ,length of ownership can be a problem.If the buyer needs to get a mortgage, will she struggle if your father has owned the house for less than 6 months?
(I might have invented this, just vaguely remember reading something like this once)
An apparent need to move so soon, could also make a possible buyer wonder if there is a hidden agenda.0
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