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Buying a house from a family member
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scottishsavingsgirl
Posts: 38 Forumite
Hi,
We're planning on buying my boyfriend's mum and dad's house in the next few months as they're planning on buying another house.
They've agreed to sell it to us for £80,000 even though the value is likely to be nearer £100,000.
I've seen some posts about gifted deposits and I'm wondering if they can sell the house to us say for £100,000, but "gift" us the £20,000 instead of selling at the lower price. Would it make any difference? We've got about £10,000 saved for a deposit.
Any help would be appreciated
We're planning on buying my boyfriend's mum and dad's house in the next few months as they're planning on buying another house.
They've agreed to sell it to us for £80,000 even though the value is likely to be nearer £100,000.
I've seen some posts about gifted deposits and I'm wondering if they can sell the house to us say for £100,000, but "gift" us the £20,000 instead of selling at the lower price. Would it make any difference? We've got about £10,000 saved for a deposit.
Any help would be appreciated
0
Comments
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Best thing to do is speak to your solicitor.
If the house is valued at £100k and you have a deposit of £30k (20 gifted plus 10 saved) your LTV will be better for mortgage purposes.0 -
This is what mortgage lenders would describe as a "concessionary purchase" - only some lenders will allow it.
For background info, here's what a couple of lenders say to Mortgage Brokers about it:- http://www.nationwide-intermediary.co.uk/lendingcriteria/purchase_types/genuine_bargain_price
- http://intermediary.tsb.co.uk/criteria/residential-criteria/concessionary-purchase/#
Maybe find a good mortgage broker who's experienced in these types of loans, to discuss.
Also there are some legal issues to check with your solicitor - if the bf's parents go bankrupt (the sale might be reversed), die within 7 years (potential IHT liability), go into state-funded care (potential deprivation of assets)...0
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