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    • GeorgeP93
    • By GeorgeP93 12th Apr 18, 10:54 PM
    • 4Posts
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    GeorgeP93
    FTB Gifted equity.
    • #1
    • 12th Apr 18, 10:54 PM
    FTB Gifted equity. 12th Apr 18 at 10:54 PM
    I literally have no clue what route to take as I wasnít expecting to be in this position. My mum has offered to sell her house to us for £150,000 we havenít had it valued yet but the house next door sold in February for £205,000.

    Iím presuming some lenders will take that as gifted equity?

    Next question as Iíve not been expecting this Iíve been paying my girlfriend who Iíve moved in with half the bills, my bills and food and the rest has gone on just stuff really, I havenít been saving until now where I will be strict again.

    Iíve got some of my own savings, a score of 997 on Experian (I know people say it means !!!!!! all) Iíve never been in my overdraft and paid off a car loan and a couple smaller loans all without missing a payment. Have gambled on the football but thatís now stopped as I assume they frown upon that.

    Any tips, are mortgages hard to get? What should I be doing to prepare myself for a mortgage? We earn £40+ between us a year and Iím taking a course which will lead to a decent pay rise, do they take anything like that into account? I work for my dad, itís just me and him but Iím employed full time and have been for 3 years, will that affect it? Thanks people.
Page 1
    • Ms Chocaholic
    • By Ms Chocaholic 12th Apr 18, 10:55 PM
    • 9,477 Posts
    • 57,862 Thanks
    Ms Chocaholic
    • #2
    • 12th Apr 18, 10:55 PM
    • #2
    • 12th Apr 18, 10:55 PM
    Where will your mum live?
    Thrifty Till 50 Then Spend Till The End

    You can please some of the people some of the time, all of the people some of the time, some of the people all of the time but you can never please all of the people all of the time
    • GeorgeP93
    • By GeorgeP93 12th Apr 18, 10:58 PM
    • 4 Posts
    • 0 Thanks
    GeorgeP93
    • #3
    • 12th Apr 18, 10:58 PM
    • #3
    • 12th Apr 18, 10:58 PM
    Where will your mum live?
    Originally posted by Ms Chocaholic
    She rents the house we want to buy out but then rents a house for herself. She wants to carry on living in the house she rents currently and not buy another house.
    • John-K
    • By John-K 12th Apr 18, 11:01 PM
    • 654 Posts
    • 1,017 Thanks
    John-K
    • #4
    • 12th Apr 18, 11:01 PM
    • #4
    • 12th Apr 18, 11:01 PM
    You need to consider the rules on deprivation of assets. If she ever needs to go into a home she would be assessed as having given away an asset (the difference between fair value and selling price) which could have been used to fund her care.
    • amnblog
    • By amnblog 13th Apr 18, 7:58 AM
    • 10,679 Posts
    • 4,233 Thanks
    amnblog
    • #5
    • 13th Apr 18, 7:58 AM
    • #5
    • 13th Apr 18, 7:58 AM
    George, are we saying Mum owns a property which is currently let and which she will sell to you under value. Her own home is another property which she rents from someone else?


    If so, yes you can purchase this property but not all lenders will be amenable to it. This process if generally known as a concessionary purchase. From what you have said here, you can purchase without putting any case in yourself.


    As part of the process Mum will need to take independent finance advice when the potential issue of deprivation of assets and inheritance tax would be covered (she may also have to think about capital gains tax).
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • GeorgeP93
    • By GeorgeP93 13th Apr 18, 10:22 AM
    • 4 Posts
    • 0 Thanks
    GeorgeP93
    • #6
    • 13th Apr 18, 10:22 AM
    • #6
    • 13th Apr 18, 10:22 AM
    George, are we saying Mum owns a property which is currently let and which she will sell to you under value. Her own home is another property which she rents from someone else?


    If so, yes you can purchase this property but not all lenders will be amenable to it. This process if generally known as a concessionary purchase. From what you have said here, you can purchase without putting any case in yourself.


    As part of the process Mum will need to take independent finance advice when the potential issue of deprivation of assets and inheritance tax would be covered (she may also have to think about capital gains tax).
    Originally posted by amnblog
    That is the case, she still owes about 60/70k on the house but wants to sell it as she needs the money.

    It might be worth noting that Iím willing to pay as much as I can afford to borrow within reason, one to help her out and give her a fair price and two so that I can make it as simple as possible.
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