Buying from family

Joshua1993

Hi all, me and my other half are planning on buying our late grandfather’s house. It currently belongs to mother in law who thinks it’s a great idea so we have confirmation that we can have it.

We are first time buyers so will need a mortgage of some sort and advise on how things work. What is the minimum extra cost of buying a house, do we need solicitors? Etc. We need to get the house valued also, does this involve an estate agent?

Any information is kindly welcomed!

DCFC79

Joshua1993 wrote: »

Hi all, me and my other half are planning on buying our late grandfather’s house. It currently belongs to mother in law who thinks it’s a great idea so we have confirmation that we can have it.

We are first time buyers so will need a mortgage of some sort and advise on how things work. What is the minimum extra cost of buying a house, do we need solicitors? Etc. We need to get the house valued also, does this involve an estate agent?

Any information is kindly welcomed!

At a guess the mil needs to get an estate agent to value it.

marmitemum

Hi Joshua, my husband and I bought a house as first time buyers back in 1983 which belonged to my parents. They wanted to retire to an area where property was much cheaper and so could afford to let us have it at a reasonable price. They wanted to sell it to us at a low price but not so low that it was very obviously below market value and liable to have tax implications. This is something that your mother in law will have to bear in mind as if she sells it to you too cheaply she could be in trouble and be liable to pay Capital Gains Tax, as she could be accused of selling it cheaply to avoid paying tax.

She could have the house valued by a couple of estate agents and then not engage them but sell it to you at somewhere just below the lower end of what agents think it would make if priced for a quick sale.

Yes you would need a solicitor and so would she. How old is the property? Plus do you have a deposit saved up?

amnblog

Both you and your mother in law need separate solicitors.

You do not need an Estate Agent.

Get it valued using an RICS valuer if you are buying it full price. If she is selling it to you under value, a formal valuation will only be necessary from the Lender and the Lender will arrange that.

If you are not putting a cash deposit in, that is an extra complication for the Lending and you should speak to a Mortgage Broker.

As a minimum you will need a couple of thousand for legal and other costs.

Andrea_Mortgage_Advisor

As you are a first time buyer, and therefore totally inexperienced, it is a mortgage adviser's duty of care to go through the whole process step-by-step with you and ensure that you understand everything. Good advisers will be happy to help you with the whole process, from getting an initial value on the property, to helping deal with the solicitors. They will be able to give you a near exact cost from the start. Find a good adviser.