using equity as a gift.

R-N-K

Hi all, got a question hope someone can answer pls.

i'm looking to buy a house from a family member the house is worth around the 90k mark and they owe around the 60k mark so theres about 30k in equity (ish) i can buy the place for what they owe 60k ish in a deal we have done. but can i use the equity in the house as a depoist for it? like a gift?

any ideas

Oldernotwiser

If they sell you the house for £60,000 with an outstanding mortgage of £60,000 then there is no equity in it.

Dan_Collins_2

In theory yes you can use the equity as a gifted deposit. Not done one in a fair while and in this climate not tried to place one. Northern Rock were very good at them and a few others.

Get your self a broker or start calling lenders!

CLAPTON

It's a rather unusual situation but probably yes.
If the property is really worth 90k and you only require 60k mortgage then thats possible... best to see a mortgage advisor

Dan_Collins_2

Its actually very common. More so in asian and other cultures.

The only you have is lenders current position, any risk in the value being wrong and they will bolt.

NeilQuinn

I've just done one with Halifax for some clients, buying from their parents. There's plenty of lenders who'll do it as long as it's a family transaction.

Ian_Griffiths_Halifax

Correct Neil. The Halifax are good for this but there will probably be more lenders out there so long as it is family.

I did one for a client last week in almost the same circumstances.

angie12

Hi

We've not been too good with money matters over the years, mainly due to my inability to work for longer than 3 mths here and there. Only my O/H has worked solidly so we've just muddled along, taking loans out to survive and re-mortgaging to repay them (which has resulted in I/S only paying us £68 per month towards a £321 mortgage.)
Thanks to this site, we now realise we have wasted thousands of pounds over the years due to our not understanding interest rates, costs of taking cash off cc, paying loans off early with re-mortgages, not claiming benefits/rebates ect...
We've finally learned our lesson, but, it may be too late.

About 18 months ago, my illness worsened and my O/H gave up work to become my carer. Since then, we have had nothing but stress and worry which is making my illness worse. He wasn't on a good wage but he was able to come home/stay off whenever I needed him to and he loved his job. Money-wise, we're not a whole lot worse off, but, we are really struggling to pay our bills. We.ve decided he's going to have to look for a part-time job, we're waiting for a "better off" appointment with DHSS to make sure part-time will pay.
We love our house, We have lived in it for 24 years. One son owns next door, the youngest is still at home and our families all live close by too. We can't downsize as there is nothing much cheaper that will clear our debt too. I've been trawling this site for months looking for a way out and then I saw this subject.

I wonder if someone could kindly explain HOW this idea works AND if it could work for us. People tell us to sell and rent, and if we can't find a solution, we will have to, but, we're not bothered about having loads of money, we would be happy just to live rent free in our own home.

Mortgage owed £37,100: £200 pm ( Halifax, lengthened repayment from 13 to 18 years)
Secured loans £8,500: £110 pm
Credit cards £2,300 £80 pm
Loan £800 £27 pm

Total Debt £48,700

House value £120.000

Any advice at all will be greatly appreciated.

Angie

angie12

angie12 wrote: »

Hi

We've not been too good with money matters over the years, mainly due to my inability to work for longer than 3 mths here and there. Only my O/H has worked solidly so we've just muddled along, taking loans out to survive and re-mortgaging to repay them (which has resulted in I/S only paying us £68 per month towards a £321 mortgage.)
Thanks to this site, we now realise we have wasted thousands of pounds over the years due to our not understanding interest rates, costs of taking cash off cc, paying loans off early with re-mortgages, not claiming benefits/rebates ect...
We've finally learned our lesson, but, it may be too late.

About 18 months ago, my illness worsened and my O/H gave up work to become my carer. Since then, we have had nothing but stress and worry which is making my illness worse. He wasn't on a good wage but he was able to come home/stay off whenever I needed him to and he loved his job. Money-wise, we're not a whole lot worse off, but, we are really struggling to pay our bills. We.ve decided he's going to have to look for a part-time job, we're waiting for a "better off" appointment with DHSS to make sure part-time will pay.
We love our house, We have lived in it for 24 years. One son owns next door, the youngest is still at home and our families all live close by too. We can't downsize as there is nothing much cheaper that will clear our debt too. I've been trawling this site for months looking for a way out and then I saw this subject.

I wonder if someone could kindly explain HOW this idea works AND if it could work for us. People tell us to sell and rent, and if we can't find a solution, we will have to, but, we're not bothered about having loads of money, we would be happy just to live rent free in our own home.

Mortgage owed £37,100: £200 pm ( Halifax, lengthened repayment from 13 to 18 years)
Secured loans £8,500: £110 pm
Credit cards £2,300 £80 pm
Loan £800 £27 pm

Total Debt £48,700

House value £120.000

Any advice at all will be greatly appreciated.

Angie

Sorry to bump this up but, we're desperate for advice as we don't want to end up doing something stupid - again!

luckyfool

You should start your own thread, pasting the above query into it.

angie12

Thanks Luckyfool

I'm not too good on computer, so I'll give it a miss.

Angie