Vendor selling at a low price but bank want this as a gifted deposit

xylophone

She lives in another property completely with her partner.

Then there may be CGT considerations for your mother.

There may also be IHT considerations.

SMcCalden

Thanks all again.

She owns her home 100% while her partner owns their shared home 100% himself so maybe that alters things a bit. In any case, I’m not concerned too much on her tax implications. I need to focus on my own mortgage and getting an bank to approve it inclusive of a 50k discounted sale price from the house valuation. Please help me with the precise scenario I need to be asking the bank for.

“I want a mortgage for a property I’m buying from my mum where the sale agreed price is 50k less than the property market value.”

I can’t have another mortgage application fall foul of some legal balls please.

SDLT_Geek

The issues, including what you should say to a lender are explained here: https://www.blakemorgan.co.uk/news-events/blog/bank-mum-and-dad-concessionary-purchases/

middleclassbutpoor

SMcCalden wrote: »

Thanks all again.

She owns her home 100% while her partner owns their shared home 100% himself so maybe that alters things a bit. In any case, I’m not concerned too much on her tax implications. I need to focus on my own mortgage and getting an bank to approve it inclusive of a 50k discounted sale price from the house valuation. Please help me with the precise scenario I need to be asking the bank for.

“I want a mortgage for a property I’m buying from my mum where the sale agreed price is 50k less than the property market value.”

I can’t have another mortgage application fall foul of some legal balls please.

No you are buying a house at market value but you need a loan for 50k less than this as your mother is gifting you this amount

xylophone

I’m not concerned too much on her tax implications.

You don't think that she might be and that they ought to be discussed?

Red-Squirrel_2

SMcCalden wrote: »

2nd option there. She lives in another property completely with her partner.

Is the place you are buying from her empty? When did she move out?

Tom99

middleclassbutpoor wrote: »

No you are buying a house at market value but you need a loan for 50k less than this as your mother is gifting you this amount

The OP is not buying this house at market value, they are buying it at £50k under market value, all well and good and if the mortgage co are happy to give you the mortgage you want and all they want from your mother is a letter saying £50k is a gift then I don't see why either of you should have a problem with that. Your contract, transfer and stamp duty will all still be based on the price you are paying, so neither of you are losing anything.
Basically what's the problem with that? I think you are the one making it 'uber complex' not the bank.

warby68

Think about it OP, people's assets cannot be 'magicked' away by spurious low selling prices for all manner of possible reasons, CGT, IHT, benefits, deprivation of assets.

What is your problem with doing what the Bank wants?

If you insist the 'true' price is £50k lower, then that makes it a 100% mortgage you need - very unlikely to find one of those.