Solicitor wants updated offer from broker who I have paid already

DaffyDuck316

Thanks, I really appreciate everyone who has tried to support and help me in this process.

Well, the price of the house was £265,000

I offered £257,000 (Discount from the Landlord)

We have been trying to amend it to £257,000 with an £8000 Gifted Deposit 

I did just ask the solicitor if we could amend it to £265,000 with an £8000 Gifted Deposit 

Then maybe this will mean I am not getting a Below Value Mortgage?

I don't know if that would work, but I did ask.

sheramber

DaffyDuck316 said:

Thanks, I really appreciate everyone who has tried to support and help me in this process.

Well, the price of the house was £265,000

I offered £257,000 (Discount from the Landlord)

We have been trying to amend it to £257,000 with an £8000 Gifted Deposit 

I did just ask the solicitor if we could amend it to £265,000 with an £8000 Gifted Deposit 

Then maybe this will mean I am not getting a Below Value Mortgage?

I don't know if that would work, but I did ask.

I think you would need to hand over the £8000 deposit , which you donlt have.

DaffyDuck316

Ah ok, it did sound like too simple an answer after all this time. Thanks.

Myci85

Is £8000 your full deposit or do you have savings to add to that? Whilst you can now get 99% and I think even 100% mortgages, I think the criteria for these are so strict they're not easy to get. We managed to buy with a bit over 5% deposit, and even that was hard, I think if you have 10% or more it is easier, but that's not easy for most FTB to save up. 

DaffyDuck316

The offer was for £265,000 (The asking price) with a 5% deposit

£5250 of my own money
£8000 Gifted from the Landlord

The problem is the solicitor puts £257,000 on the contract and it is considered a Genuine Bargain Price which I cannot use in conjunction with a Nationwide Helping Hands mortgage

But if I were to offer £273,000 with a 5% deposit...

£5650 of my own money
£8000 Gifted from the Landlord 

Then the solicitor can put £265,000 on the contract.

Would that possibly no longer make it a Genuine Bargain Price mortgage?

DaffyDuck316

Hi, just wondering if anyone had any opinion my last post.

Sadly I just got handed a Section 21 as well, so I'll be sticking on the rental ladder for now

housebuyer143

DaffyDuck316 said:

The offer was for £265,000 (The asking price) with a 5% deposit

£5250 of my own money
£8000 Gifted from the Landlord

The problem is the solicitor puts £257,000 on the contract and it is considered a Genuine Bargain Price which I cannot use in conjunction with a Nationwide Helping Hands mortgage

But if I were to offer £273,000 with a 5% deposit...

£5650 of my own money
£8000 Gifted from the Landlord 

Then the solicitor can put £265,000 on the contract.

Would that possibly no longer make it a Genuine Bargain Price mortgage?

It's not a gift though, it's a discount. You can't do that unfortunately. Many lenders do not accept gifts from non family members anyway.

Did you ask the landlord if he will accept £8k less, as in reduce the asking price? Surely that is the same thing as negotiating a discount as loads of people do when buying? Why does he have to gift you anything? Can't he just say "I wish to sell the house to you at £257k because you have been a good tenant & I want a quick sale?".  
I cant understand how this is different than you making an offer on the property at 8k less and the landlord agreeing? It might be too late now and confuse your solicitors at this point but can't hurt to look into this?

Tiglet2

housebuyer143 said:

DaffyDuck316 said:

The offer was for £265,000 (The asking price) with a 5% deposit

£5250 of my own money
£8000 Gifted from the Landlord

The problem is the solicitor puts £257,000 on the contract and it is considered a Genuine Bargain Price which I cannot use in conjunction with a Nationwide Helping Hands mortgage

But if I were to offer £273,000 with a 5% deposit...

£5650 of my own money
£8000 Gifted from the Landlord 

Then the solicitor can put £265,000 on the contract.

Would that possibly no longer make it a Genuine Bargain Price mortgage?

It's not a gift though, it's a discount. You can't do that unfortunately. Many lenders do not accept gifts from non family members anyway.

Did you ask the landlord if he will accept £8k less, as in reduce the asking price? Surely that is the same thing as negotiating a discount as loads of people do when buying? Why does he have to gift you anything? Can't he just say "I wish to sell the house to you at £257k because you have been a good tenant & I want a quick sale?".  
I cant understand how this is different than you making an offer on the property at 8k less and the landlord agreeing? It might be too late now and confuse your solicitors at this point but can't hurt to look into this?

Is it because a 10% deposit on £257,000 would be £25,700 and a 5% deposit would be £12,850 and Op seems to have only £5650?  

housebuyer143

Tiglet2 said:

housebuyer143 said:

DaffyDuck316 said:

The offer was for £265,000 (The asking price) with a 5% deposit

£5250 of my own money
£8000 Gifted from the Landlord

The problem is the solicitor puts £257,000 on the contract and it is considered a Genuine Bargain Price which I cannot use in conjunction with a Nationwide Helping Hands mortgage

But if I were to offer £273,000 with a 5% deposit...

£5650 of my own money
£8000 Gifted from the Landlord 

Then the solicitor can put £265,000 on the contract.

Would that possibly no longer make it a Genuine Bargain Price mortgage?

It's not a gift though, it's a discount. You can't do that unfortunately. Many lenders do not accept gifts from non family members anyway.

Did you ask the landlord if he will accept £8k less, as in reduce the asking price? Surely that is the same thing as negotiating a discount as loads of people do when buying? Why does he have to gift you anything? Can't he just say "I wish to sell the house to you at £257k because you have been a good tenant & I want a quick sale?".  
I cant understand how this is different than you making an offer on the property at 8k less and the landlord agreeing? It might be too late now and confuse your solicitors at this point but can't hurt to look into this?

Is it because a 10% deposit on £257,000 would be £25,700 and a 5% deposit would be £12,850 and Op seems to have only £5650?  

Ah yes ok! I see the problem 😞

DaffyDuck316

My first mortgage advisor told me that if I filled in a concessionary gifted deposit application, the sale would go through with

£5250 of my own deposit 
£8000 gifted deposit 

Nationwide approved the mortgage. But the solicitor did not want to include the £8000 in the purchase price as I wasn't handing £8000 over. I asked her if we could put on the contract £257,000 with an £8000 gifted deposit but she said no.

This meant I had to fill in a concessionary Genuine Bargain Price application instead and then I was told I needed

£12850 of my own deposit.

My mortgage advisor never explained why this was the case as I think she was trying to avoid being accountable. Or if she did, I can't remember or didn't understand. I did later see that a Genuine Bargain Price mortgage could not be used in conjunction with a Helping Hands mortgage that Nationwide provides to help with affordability 

---

So I thought I would raise the question of what if this wasn't a concessionary purchase?

Personally I think the answer would still be the same as the Genuine Bargain Price application, I would just need 5% of £265000 from my own money. But I thought I would pose the question in the hopes one of you guys said it might work and the landlords gifted deposit could now actually be used as part of my minimum deposit required.

It does sound like you agree housebuyer, I would still need 5% deposit of my own money, and thank you Tiglet too, that is indeed correct, I would not have enough for my minimum deposit.

It's rather frustrating because if I asked the landlord to freeze my rent I'd currently have £9000 at the end of the month, but it's still £3500 short and obviously the landlord has had enough as they gave me a Section 21. My car is my most valuable asset but that would probably only sell for £500, and I have no close family to ask. There is a chance I could get a refund from my first mortgage advisor but I would still be short. Annoyingly my solicitor had allowed me to sign the contract for the house back in January and was talking about being one step away from the exchange of contracts. Now they have issued me with a £1000 abortive fee including extra work.

I think I'll just have to bite the bullet on this one. To be honest, I thought it was a bit cheating when my mortgage advisor said I could use a gifted deposit from the landlord, but I didn't have enough time to save up my own deposit money as the house went on the market unexpectedly.

Once again, I am thankful for everyone's efforts to assist me, I definitely gave it everything I could to make this work, and your support has been great. Barring some miracle, this will probably be my last post until maybe one day I do save up some deposit money of my own.