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I live in a house owned by my mothers partner. Originally, when I moved in, it was agreed I could buy the house for £110K as it needed a total re-furb. Two years have passed and the re-furb is completed and the house is now valued at circa £160K.
My problem is I have been told I cannot buy it with a mortgage at the agreed £110K price as it is too far below the open market value.
Does anybody have any ideas on how I can get this purchase through.
That's not exactly true Micheal. Each lenders have T&C that apply to family sales and those BMV though you will still be able to proceed with many lenders.
One of our advisers would be happy to talk it through with you and discuss options on 01133203240.
_________________________________________________________________________My posts are not financial advice, just a rambling guy passing time on a coffee break.The team at Bespoke Finance offers advice, including Limited Company Buy-to-Let , HMO Conversion and Cheap Life Insurance._________________________________________________________________________
This sounds like a good problem. Apologies I can't help but, I just had to comment.
(*Moderator note: Member has not passed probation and therefore not permitted to recommend themselves when the original poster did not ask for a recommendation for a mortgage broker*).
They are not family members. Its your mother's partner not your father. You should make this clear.
Lenders wont value it greater than cost but there are lenders who look at this sort of thing but its not mainstream as you have found out.
The easy answer is buy it for £160k and get a gift for £50k. This will mean an SDLT consideration of £160k. Alternatively you could see if a bank will accept a gift of 50/160ths of the property leaving the consideration at £110k - I would expect to be able to persuade a lender of this.
Chartered Accountant, Tax Advisor and Mortgage broker
(and BTL portfolio owner)
The touchy subject of who can offer a gift within the 'family' is viewed and assessed differently by the lenders. Usually it's natural parents, brothers, sisters, grandparents who are the stipulated approved family members only.
However, if your mother and her partner have a long standing relationship (albeit they haven't married) then we can indeed still help process a standard family concessionary gift purchase / mortgage for you.
The figures you mention all fall within the lenders gift parameters as well.
So, yes, contact us anytime and we would be pleased to assist.
01206 654 444 or advice@PTFS.co.uk
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Thanks for this. Very helpful.