Mortgage and charge on property

frogglet

Was the original plan for you to buy it from him at market value?
It seems something has made him realise he is giving a lot of money away with no control.
Can he afford to give a large sum of money away?

loubel

That's really unfortunate. Does he understand that you can't buy the property if he is not gifting the equity? It sounds like it is just a misunderstanding of how the finances are worked out that has triggered his request. Hopefully when you explain that you can't now buy it he will revert to gifting. If not I guess he will have to sell it on the open market instead. It sounds like you would be entitled to some of the proceeds of that sale you could then use as a deposit in another property but perhaps he doesn't realise that either... 

bell2020

frogglet said:

Was the original plan for you to buy it from him at market value?
It seems something has made him realise he is giving a lot of money away with no control.
Can he afford to give a large sum of money away?

The plan was always to buy it off him for what it cost him to build it. Which is why we couldn't start the mortgage process until the house was finished so we knew how much to borrow. The price is 165k but on our earnings we can only borrow 157,750 which is why we have to provide 5% cash of £8250 but he doesn't know about that. 

Yes he can, he has bought the plot and built the house (over 200k in total) using his own cash. He lives in a property valued at 780k that he built for 170k. He is very well off. Not that it should make a difference to any of this though!

bell2020

loubel said:

That's really unfortunate. Does he understand that you can't buy the property if he is not gifting the equity? It sounds like it is just a misunderstanding of how the finances are worked out that has triggered his request. Hopefully when you explain that you can't now buy it he will revert to gifting. If not I guess he will have to sell it on the open market instead. It sounds like you would be entitled to some of the proceeds of that sale you could then use as a deposit in another property but perhaps he doesn't realise that either... 

That's what I thought... as he text about a week ago querying the 265 purchase price so my husband replied saying that's the property value and you will still be getting your 165. And that was it. Then we had this email yesterday so my husband text him again saying this will probably jeopardise the mortgage and can't we do something in writing after the sale and he replied saying "no, nothing to do with mortgage. Let the solicitors do their job" 🙄 don't even know what that's supposed to mean..... it has everything to do with a mortgage if it means we can't get one!! 

frogglet

I think the only solution is to talk to him as loubel says. Put all your points forward you have said here. Especially things he doesn't know about. I know its terribly stressful, but the only way forward is a full and open discussion explaining all the facts. 
I hope it is a mis understanding. 
His solicitor may have pointed things out which he hadn't realised.

bell2020

frogglet said:

I think the only solution is to talk to him as loubel says. Put all your points forward you have said here. Especially things he doesn't know about. I know its terribly stressful, but the only way forward is a full and open discussion explaining all the facts. 
I hope it is a mis understanding. 
His solicitor may have pointed things out which he hadn't realised.

I hope so. Not sure my husband will want to go and see him but if we have no other option then he will have to. Thank you for your advice!

frogglet

I dont think the solicitors will sort out any misunderstandings. You both need to go and explain the facts face to face and the various outcomes affecting yourselves.
On lots of occasions people think other people are aware of things which turns out they aren't.
Texts are mis interpreted all the time.
His solicitor is acting in his interest.
You have nothing to lose as it stands , if you can't get the mortgage, you can't get the house.

frogglet

Oh yes , and don't mention you think he's loaded and can afford it, comes across as greedy. 

bell2020

I know... I don't go around saying he is loaded... I was asked his financial status so I answered 😂 his financial situation is nothing to do with the sale. 

My husband is going to speak to him i think.... not feeling hopeful but as you say, we have nothing to lose!! Thank you!

steampowered

You could offer to put some informal agreement between yourselves?

Doing it through solicitors will be likely to jeopardise the sale. The lender won't accept a loaned deposit. The lender will require any owners of the equity in the property to be on the mortgage.