Options for deposit

waribai

Hi,
I just wanted to sound people out regarding our situation. We are in the process of selling our property (under offer) which has a value of 550k. We have a mortgage balance of 155k and want to purchase a home for 820k. Our offer has been accepted. I am hoping for the bank to port the 155k and increase the mortgage (multipart) to a total of 200k 
I am then receiving 150k as a gift from my mother which leaves us around 75k short of the total amount. If you are still with me, what are my best options for making up the deposit after the gift? I have an offshore saving with RL360 with a value of 100k. I also have a BTL property worth around 170k with a 110k mortgage. Could I assign any of these or is cashing in the fund or selling the BTL my only option?
Thanks in advance for any advice!

Salemicus

Who are you hoping to assign these to and in return for what consideration? And how would that differ from selling?

getmore4less

£820-£550= £270
£50k mortgage
£150k  gift 
£70k short

Might be able to squeeze £15-£25 from the BTL if the yield is good.
selling will only get around £60k and probably not a quick option.

Any reason you can't raise more on the mortgage? 

Comms69

The obvious ( and cheapest) option would be to simply get a higher mortgage

AdrianC

waribai said:

I just wanted to sound people out regarding our situation. We are in the process of selling our property (under offer) which has a value of 550k. We have a mortgage balance of 155k and want to purchase a home for 820k. Our offer has been accepted. I am hoping for the bank to port the 155k and increase the mortgage (multipart) to a total of 200k 
I am then receiving 150k as a gift from my mother which leaves us around 75k short of the total amount. If you are still with me, what are my best options for making up the deposit after the gift? I have an offshore saving with RL360 with a value of 100k. I also have a BTL property worth around 170k with a 110k mortgage. Could I assign any of these or is cashing in the fund or selling the BTL my only option?

What do you mean by "assign"?

Do you mean that you want the vendor to be happy to accept £75k less cold hard cash on the promise that you've got £75k in an RL360 offshore investment, honest?
Or do you mean somehow transferring ownership of 44% of the BtL to them (notwithstanding the minor detail that'd leave your remaining share in -ve equity, since you only have £60k of equity)?

I'm not sure you're quite understanding the "deposit", either.
If you mean the security deposit against you pulling out of the purchase post-exchange, in chained transations that's normally simply passed up the chain, even where that means <10%. Exchange and completion are usually simultaneous currently, anyway, so it's academic.

If you mean your non-mortgage equity, 100%-LtV, then that's the money you are paying to the vendor... Some of it comes from the equity in your sale, some of it needs to be cold hard cash transferred to your solicitor's bank account.

waribai

Hi,
Thanks for the replies. Maybe I wasn't clear. I was wondering if I could give the bank ownership of the offshore investment and then they give me more cash. I remember at one point I did that with my BTL mortgage until the value of the property increased and the bank reassigned the fund policy back to me.

saajan_12

waribai said:

Hi,
Thanks for the replies. Maybe I wasn't clear. I was wondering if I could give the bank ownership of the offshore investment and then they give me more cash. I remember at one point I did that with my BTL mortgage until the value of the property increased and the bank reassigned the fund policy back to me.

Possibly, thats something you need to discuss with your bank. If they won't consider it, then you could reach out to a broker, and possibly get a new mortgage wiht a lender who would consider it, either in addition to or instead of the current one. 

waribai

Thanks. That's some great advice. Also one final question. In terms of the money that will be a gift. Should I get that transferred to myself or should they pay that to the solicitor just before exchanging contracts?

greatcrested

Neither.

Transfer it to me and I'll transfer to your seller. Saves on solicitor fees.

waribai

greatcrested said:

Neither.

Transfer it to me and I'll transfer to your seller. Saves on solicitor fees.

Very funny....just on the solicitors' documents it said something along the lines of "It's not as simple as just putting the cash into your bank account, the money needs to be declared as a gift"

greatcrested

waribai said:

greatcrested said:

Neither.

Transfer it to me and I'll transfer to your seller. Saves on solicitor fees.

.just on the solicitors' documents it said something along the lines of "It's not as simple as just putting the cash into your bank account, the money needs to be declared as a gift"

But that is a completely new question.

Q1 - were to put the money.

Q2 - how to document the gift, They are unelated quesions.