Buying Parent's home

Jimmy1972

user1977 said:

Jimmy1972 said:

kingstreet said:

If you concessionary purchase from them at £175,000, £55,000 is gifted, eg £20,000 your deposit leaving you needing to borrow £100,000.

I don't understand this. How would my parents get 120k in this example? The lender will actually class equity as cash which would be paid to my parents along with the 100k I'd be borrowing?

Where did you think your £20k would be going?

It was confusing to me as the mention of the  equity being used as a deposit gave me the wrong idea. Anyway, I've spoken to a broker and I'm getting a mortgage for 120k with a concessionary purchase mortgage. I'll keep my 20k for backup