Need Advise: First Time Buyer - a total newbie, confused and wanting to buy a property

davidmcn

Scotbot said:

MaryNB said:

Your parents can gift you that money as long as they sign a letter saying it is a gift not a loan. However they will need to prove the source of the funds as part of anti money laundering checks by your solicitor. They'll have to show proof they got it from the sale of a house. Not sure how easy the process will be if it's in cash. Won't make it easier.

If it really is cash under a mattress then that will be a challenge not least because no solicitor will accept a bundle of notes as a deposit. It will need to be transferred via a bank account.

The OP said "They have the money in cash and never declared or put the money in the bank" which suggests we are talking about the folding stuff.

OP, which country is it where they apparently do property sales with piles of cash? And if your parents are reluctant to bank the money, how are they going to get it to you? If they are going to put it in the bank first, they'd be best to do that now. If it ceased being hard cash long enough before you have to use it, that will help to make it more acceptable from a money-laundering point of view (though I would still anticipate problems).

AdrianC

davidmcn said:
OP, which country is it where they apparently do property sales with piles of cash?

Perhaps the transaction was not cash, but taking the money out of the country was... not legally straightforward?

Bucki

AdrianC said:

davidmcn said:
OP, which country is it where they apparently do property sales with piles of cash?

Perhaps the transaction was not cash, but taking the money out of the country was... not legally straightforward?

Indeed, a property was sold abroad and there is the paperwork but is not in english.

My wording was wrongly used ,sorry! The money is in the bank (abroad) and needs to be converted from euro to GPB.

I didnt think there was solicitor fee / surveyor feee for me and vendor

How much am I looking for?

davidmcn

Bucki said:

AdrianC said:

davidmcn said:
OP, which country is it where they apparently do property sales with piles of cash?

Perhaps the transaction was not cash, but taking the money out of the country was... not legally straightforward?

Indeed, a property was sold abroad and there is the paperwork but is not in english.

My wording was wrongly used ,sorry! The money is in the bank (abroad) and needs to be converted from euro to GPB.

Right, in that case it's far less of a problem. Will need ID / bank statements and possibly some translation work.

Bucki

davidmcn said:

Right, in that case it's far less of a problem. Will need ID / bank statements and possibly some translation work.

The biggest problem is now the affordability

Seriously, I could not sleep all night thinking over this... how to make it happen.

Yes, I know my wage is not big but I seriously thought that we could manage the money well.

Our monthly expense is not huge and content/life insurance are optional I suppose.

The way I looked at it was like this:

My current outgoings

GYM	£           15.99
Mobile (wife)	£              5.79
Car Ins.	£           34.32
MOT	£              2.50
Road Tax	£           15.00
Petrol	£           50.00
TV	£           13.00
Internet	£           35.00
Life Insurance	£           30.00 * estimate
Content Insurance	£           30.00  *estimate

Total

£         231.60

Property monthly expenses

Council TAX D	£          155.00
Water	£            50.00*estimated
Gas	£            50.00*estimated
Electric	£            50.00*estimated
Total	£          305.00

Mortgagge

If we manage to get a 7 year fixed rate (as seen online) it would be round £680 per month

So I thought, right, £310 + 235 = £545 

Then, £545 + Mortgage e.g. £700 = £1245 per month, and would leave round £515 left after my salary.

Is this wrong calculation approach or am I missing other factors?/

Yes, food + clothes + leasure are not calculated.

GOD!! I am going crazy wish I had a better salary.

I am so wanting this property so badly ...

Money of friends etc.

Can I technically get money from my friends, who owe a business?

He  got a car wash and a take away and I am sure he would be willing to help for a long term.

AdrianC

Bucki said:

The biggest problem is now the affordability

Seriously, I could not sleep all night thinking over this... how to make it happen.

Yes, I know my wage is not big but I seriously thought that we could manage the money well.

Our monthly expense is not huge and content/life insurance are optional I suppose.

Lenders don't look at it that way. They have affordability criteria that you need to fit, and those were tightened up in the aftermath of 2008.
They will not lend you the 6+ multiple of salary that you want.
They just won't. They can't.

Money of friends etc.

Can I technically get money from my friends, who owe a business?

He  got a car wash and a take away and I am sure he would be willing to help for a long term.

A carwash is rarely the most... financially impeccable... of businesses.
He may well be a little reluctant to have your solicitor sniffing around his books to prove it's legitimate money.

That aside, lenders regard loaned deposits as... well, debts. Money you've borrowed. They take that into account. Unless your friend is willing to lend you the full £170k? And then the solicitor really will raise his eyebrows!

davidmcn

Bucki said:

davidmcn said:

Right, in that case it's far less of a problem. Will need ID / bank statements and possibly some translation work.

Can I technically get money from my friends, who owe a business?

He got a car wash and a take away and I am sure he would be willing to help for a long term.

That doesn't sound realistic. Do you think he's willing to sign up as a guarantor i.e. be jointly liable for your mortgage for its entire duration? I think you need to accept that you can't afford what you want.

Bucki

Wow, thanks for your feedback and comments.

Seriously, I have had no sleep since last night .... I am in stress and in dilemma.

We really love the house, is ideal for us, near parents, near school, near main road, near town.

Overall, it is great property and yes I admit, my salary is not best compared to many of you here.

Sadly, we have been through a rough time since we got married and had many losses  

this time, its our Rainbow and are thrilled and looking for our own place.

If I only had £100 saving as deposit, then maybe it would make it happen.??? Just trying to think what else can be done? Can my friend who owns a business help me to "gift" money e.g. surely he will lend it to me but that be between me and him and state as a gift.

My wife will defenitaly seek part time after a while and I will get a second job too.

I understand this would generate more monthly income but I guesss the bank "does not care atm cos they cant see the income now"., right?

We will be entitled to Child Tax Credit. its £80 a month I believe.

Because of my wage, I am not entiteled to the other beenfits for the child as I been told there would be two types of benefits.

What other fees am I missing?

Some said "solicitors fees, building surveys for vendor and buyer".

Can you please explain what additional fees am I missing?

hippocrates1

Bucki said:

Wow, thanks for your feedback and comments.

Seriously, I have had no sleep since last night .... I am in stress and in dilemma.

We really love the house, is ideal for us, near parents, near school, near main road, near town.

Overall, it is great property and yes I admit, my salary is not best compared to many of you here.

Sadly, we have been through a rough time since we got married and had many losses  

this time, its our Rainbow and are thrilled and looking for our own place.

If I only had £100 saving as deposit, then maybe it would make it happen.??? Just trying to think what else can be done? Can my friend who owns a business help me to "gift" money e.g. surely he will lend it to me but that be between me and him and state as a gift.

My wife will defenitaly seek part time after a while and I will get a second job too.

I understand this would generate more monthly income but I guesss the bank "does not care atm cos they cant see the income now"., right?

We will be entitled to Child Tax Credit. its £80 a month I believe.

Because of my wage, I am not entiteled to the other beenfits for the child as I been told there would be two types of benefits.

What other fees am I missing?

Some said "solicitors fees, building surveys for vendor and buyer".

Can you please explain what additional fees am I missing?

It’s a just a house. You can’t afford it. Time to look elsewhere. A gift needs to be a gift not a loan from your friend. 

Bucki

Redwino222 said:

Affordability is a huge issue.  I am around the same age as you, with a similar mortgage but I earn over double what you do.

I am not rich by any means and still need to be careful. 

Your living costs will increase with the baby.

Can you start looking at Cheaper houses?

Are you also married and have 1 child?

Does your wife work... do you get child benefit?

How come you are struggling with double of my income?

Can you break down your expense for examle in my case:

	Per Month
GYM	£           15.99
Mobile	£              5.79
Car Ins.	£           34.32
MOT	£              2.50
Road Tax	£           15.00
Petrol	£           50.00
TV	£           13.00
Internet	£           35.00
Life Insurance	£           30.00
Content Insurance	£           30.00
Clothes	£                  -
Leasure	£                  -
Total	£         231.60