FTB Gifted equity.

GeorgeP93

I literally have no clue what route to take as I wasn’t expecting to be in this position. My mum has offered to sell her house to us for £150,000 we haven’t had it valued yet but the house next door sold in February for £205,000.

I’m presuming some lenders will take that as gifted equity?

Next question as I’ve not been expecting this I’ve been paying my girlfriend who I’ve moved in with half the bills, my bills and food and the rest has gone on just stuff really, I haven’t been saving until now where I will be strict again.

I’ve got some of my own savings, a score of 997 on Experian (I know people say it means !!!!!! all) I’ve never been in my overdraft and paid off a car loan and a couple smaller loans all without missing a payment. Have gambled on the football but that’s now stopped as I assume they frown upon that.

Any tips, are mortgages hard to get? What should I be doing to prepare myself for a mortgage? We earn £40+ between us a year and I’m taking a course which will lead to a decent pay rise, do they take anything like that into account? I work for my dad, it’s just me and him but I’m employed full time and have been for 3 years, will that affect it? Thanks people.

Ms_Chocaholic

Where will your mum live?

GeorgeP93

Ms_Chocaholic wrote: »

Where will your mum live?

She rents the house we want to buy out but then rents a house for herself. She wants to carry on living in the house she rents currently and not buy another house.

John-K_3

You need to consider the rules on deprivation of assets. If she ever needs to go into a home she would be assessed as having given away an asset (the difference between fair value and selling price) which could have been used to fund her care.

amnblog

George, are we saying Mum owns a property which is currently let and which she will sell to you under value. Her own home is another property which she rents from someone else?


If so, yes you can purchase this property but not all lenders will be amenable to it. This process if generally known as a concessionary purchase. From what you have said here, you can purchase without putting any case in yourself.


As part of the process Mum will need to take independent finance advice when the potential issue of deprivation of assets and inheritance tax would be covered (she may also have to think about capital gains tax).

GeorgeP93

amnblog wrote: »

George, are we saying Mum owns a property which is currently let and which she will sell to you under value. Her own home is another property which she rents from someone else?


If so, yes you can purchase this property but not all lenders will be amenable to it. This process if generally known as a concessionary purchase. From what you have said here, you can purchase without putting any case in yourself.


As part of the process Mum will need to take independent finance advice when the potential issue of deprivation of assets and inheritance tax would be covered (she may also have to think about capital gains tax).

That is the case, she still owes about 60/70k on the house but wants to sell it as she needs the money.

It might be worth noting that I’m willing to pay as much as I can afford to borrow within reason, one to help her out and give her a fair price and two so that I can make it as simple as possible.