Lack of negotiation but still want the house...

toellandback

@AdrianC why do you assume I am being dishonest to my solicitor and lender? And what difference does the deposit make to my original post? I have been upfront to everyone about the situation, I have no reason to be dishonest.

UnderOffer

toellandback said:

@AdrianC why do you assume I am being dishonest to my solicitor and lender? And what difference does the deposit make to my original post? I have been upfront to everyone about the situation, I have no reason to be dishonest.

So your lender is aware that your deposit is in fact a loan from a family member? 

Mortgage lenders generally don't like this, and are more likely to accept your application if the money was given to you as a gift, with no obligation to pay it back.

numbercruncher8

Some of the downsides cannot be easily rectified such as garden, storage, tiny bedrooms, also no off-road parking may also be not possible to be corrected depending on the property.

If other properties do feature those, why not wait for one of those to come up? Or is falling in love with something a bit of an emotional trick to get you to buy something sooner rather than later?

Of course, the pros of the property may totally outweigh all of the downsides - but in which case, why bring those downsides up? 
For instance where I am a flat that is superbly located next to the station has no parking at all; whereas one down the road does. It seems moot for me to be complaining to the EA that there is no parking.

toellandback

@UnderOffer as I mentioned previously, for the official record it's a gift. On paper, on the record, for the mortgage - it's a gift. So if the house were repossessed my parents wouldn't be claiming the money back from the bank. But between ourselves we're not going to run off with the money and intend to pay it back.

AdrianC

toellandback said:

@AdrianC why do you assume I am being dishonest to my solicitor and lender? And what difference does the deposit make to my original post? I have been upfront to everyone about the situation, I have no reason to be dishonest.

So why refer to the loaned deposit as "gifted"? It's a loan. Not a "loan presented as a gift". What is the need for "presentation", if everything is honest, clear, and above board?

Gifts are never paid back.
If there is an expectation of paying back, it is a loan, not a gift.

The important question is what difference it makes to the lender. And the answer is a big one - because it turns your 75% LtV into 100%. You have no equity of your own, and are borrowing 100% of the purchase price - 25% from your parents, 75% from the lender.

If you're being honest with your solicitor and lender, they know that it's a loan with an expectation of repayment, and not a gift. Right?

toellandback

@numbercruncher8 I see your point, but this property doesn't really offer anything that the other ones don't already, except for that I think it's got more potential for improvement.

Seashell517

AdrianC said:

toellandback said:

@AdrianC why do you assume I am being dishonest to my solicitor and lender? And what difference does the deposit make to my original post? I have been upfront to everyone about the situation, I have no reason to be dishonest.

So why refer to the loaned deposit as "gifted"? It's a loan. Not a "loan presented as a gift". What is the need for "presentation", if everything is honest, clear, and above board?

Gifts are never paid back.
If there is an expectation of paying back, it is a loan, not a gift.

The important question is what difference it makes to the lender. And the answer is a big one - because it turns your 75% LtV into 100%. You have no equity of your own, and are borrowing 100% of the purchase price - 25% from your parents, 75% from the lender.

If you're being honest with your solicitor and lender, they know that it's a loan with an expectation of repayment, and not a gift. Right?

The key here is surely 'expectation of repayment'? If the OP wants to pay the parents back and chooses to do so, then that's a lot different that the parents expecting it to be paid back. I doubt OPs parents are going to insist on monthly payments continuing if they were to lose their job or other such issue either way...

toellandback

@Seashell517 That's pretty much it. It's a gift that we intend to pay back. No expectations.

FTB_Help

toellandback said:

@numbercruncher8 I see your point, but this property doesn't really offer anything that the other ones don't already, except for that I think it's got more potential for improvement.

It sounds like you're not entirely set on this place.

One minute you're listing out the negatives (small, no fitted appliances, no parking, no scope to extend) then the next you're saying it has potential for improvement and then in another post "its not badly priced against the market.. "  yet you dont want to pay the offer price.

I think you're trying to justify your low offer by bringing up these "negatives".

If it has all these negatives, most of which you can't "improve" on (size, extend, parking) then would you be happy living there in a few years time?

It sounds like its a case of wanting something now and settling rather than waiting for something you actually really want

toellandback

@FTB_Help of course there are compromises, as I'm sure there are in every property. If it ticked every single box I wouldn't be able to afford it. It ticks the main ones for me and my partner based on our current needs, I can't predict whether those needs might change in the next few years 🤷