Gifting Equity and LTV

Durban

I wonder if anyone could assist please 

If I were to sell a property to a family member for around £30,000 less than the market value and the family member also had around £30,000 to add to that , would this gifted equity be taken into account with a lender resulting in a lower LTV with possibly more favourable interest rates ?

Or would it be best to sell to family member at full price and gift the £30,000?  

It would be easier for me to gift the £30,000 by selling the property for £30,000 less but only if a lender would take that into account 

Many thanks 

JMA74

you sell the property for the full value but gift the £30k equity so they have a £60k deposit.  Its called a Concessionary Purchase and is fine with a lot of lenders but need to be careful on the type of family relationship as lenders draw the line on how far away related you can be

Durban

Thank you JMA74. That is most helpful 

kingstreet

The property also has to "value-up"; so artificially inflating the price might backfire at valuation stage.

Durban

kingstreet said:

The property also has to "value-up"; so artificially inflating the price might backfire at valuation stage.

Yes we certainly wouldn’t do that. We would make sure it was market value