Son getting mortgage for parent

motherofstudents

I had an offer on my flat yesterday. The estate agent confirmed this via email with the buyer named as the person who wants to live in it.  I rejected this first offer and they came back with an increased offer which I accepted. The follow up email then gave the name of her son as the buyer.
  The EA said she has a large deposit but the son will get a small mortgage.  I am starting to worry about this as I thought that he would have to get some kind of buy to let mortgage if he is not going to live in the flat.  The EA is going to get proof of funds in the coming week but am I right to be concerned ? Is there anything I need to ask the agent ?  

K_S

@motherofstudents With all due respect I don't see anything in particular that you should be concerned about as long as the EA is doing their due diligence with regard to proceedability.

It's not uncommon for children to support a parent in the purchase of a property with a mortgage and there are number of different ways in which lenders allow them to do that - JBSP mortgage, second home mortgage, regulated BTL, etc etc. During the mortgage application and conveyancing process, the checks on whether the arrangements are above-board and legal will be done by the conveyancer and the lender.

motherofstudents

I know that many parents help kids to buy property but not heard of it so much the other way round. The EA did say the mother was going to go in tomorrow to show them a cheque for the gifted deposit and  I assume the son will have to produce some evidence of his mortgage. Thanks for your reply, I hope I have been worrying unnecessarily.

Thrugelmir

Anybody can write a cheque. Hopefully the evidence will be more substantive. The issue is going to be the mortgage lender. As the mother is going to have to sign an Occupier Consent Form. The effect of this is to waive her rights. 

motherofstudents

Yes, showing a cheque seems hardly proof of anything ! 

I imagine maybe the son is thinking the flat will be his if his mother has to go into a home but to be honest I have no idea. I will speak to the EA in a couple of days but I am not filled with confidence..

Thrugelmir

motherofstudents said:

Yes, showing a cheque seems hardly proof of anything ! 

I imagine maybe the son is thinking the flat will be his if his mother has to go into a home but to be honest I have no idea. I will speak to the EA in a couple of days but I am not filled with confidence..

While the pitfalls are none of your concern. I'd make sure that the transaction proceeds at speed to ensure that no time in selling the property gets wasted. Like you I suspect there's a plan that hasn't been investigatated thoroughly. Every day somebody attempts to reinvent the wheel and assumes no one has thought of the idea before. 

motherofstudents

Yes I agree.

motherofstudents

Just an update - the estate agent got the wrong end of the stick. The son is buying with his partner and his mother is gifting him the deposit.  Just hope it goes through quickly as no chain either way.