Buying a Property from a Family Member?
Manchester Mortgages were approached by a client who was looking to buy a property from their Grandparents who had moved to Italy. If you are considering buying a property from a family member then read on as page is very relevent to you. Get everything right and we’ll save you £££’s.
The Property in question was a House in Didsbury that her Grandparents had previously rented out and had decided that now was the time to sell.
Our Clients had a saved £25,000 which they were willing to use as their deposit.
The adviser asked the clients what the purchase price was and was advised it was £250,000. The adviser then asked what was the value of the property which was unknown at the time.
The Clients arranged for their Grandparents property to be valued by two estate agents and were surprised when the value came back at £310,000 to £320,000.
The adviser then asked with these valuations were the grandparents still willing to sell the property to them at £250,000 and were advised that this still was the case.
This was important as the difference between the Valuation £310,000 and the Purchase price of £25,000 (£60,000) could be considered as their deposit. This is called a Concessionary Purchase.
It was also important because at the present time because of Covid-19 the Majority of lender were lending 85% of the value of the property and because of the difference in the expected property value and the loan required Manchester Mortgages were able to find a lender who would accept the application without the clients having to use any of their own deposit which could now be used for Legal Costs and Furniture.
There was a added complication that one of the clients were Furloughed but the lender in question (Halifax plc) would still use the Furloughed income as part of the affordability for the mortgage. The other client was still working full time as a Doctor in the NHS.
The Mortgage application was submitted, the property Valued up at £310,000 and the mortgage offer was issued within 2 weeks of the mortgage application being submitted.
The Clients are now proud owners of their new home keeping it in the family and the Grandparents now have the money to enjoy their retirement.
By contacting Manchester Mortgages a industry experienced adviser can assess the full situation and see what options may be available to you.
This is just one example of Manchester Mortgages helping First Time Buyers.
Give us a call on 0161 706 0242 or email firstname.lastname@example.org to see if we can help.