Buying house from parent

[Marocain]

Hi
we are looking to buy a 3 bed house in D15 value of house 220k but my father is happy to sell it to us for 150k. We have gross income 80k plus 7k bonus and two dependants. Both paye.The issue is we have a Bank Overdraft of 2k which I am aiming to clear down this month.

We are aiming to borrow 180k approx in total -150k purchase value and 30k home improvements.

Three questions will the fact that we have overdraft affect the loan process - hoping to apply September.?

Can we use the equity of 30k plus in the house towards the deposit or is it 10 percent of 180k is required plus fees.?

Is it better to borrow for the home improvements separately rather than roll up into the mortgage ?

 

[mf1]

I don't know much about the rules for mortgages but you need to address a few issues :

1. The house is valued at 220K.
2. Your father will sell to you at a discount of 70K. The house is still valued at 200K .
3. You'll be liable to stamp duty at 1% on the full value and you may have Capital Acquisitions Tax issues on the gift element of the house.
4. 10% of the price is 15K. I don't think any bank will allow you nominate a gift from your father as a deposit.
5. Ideally, it is better to take out one mortgage although there is nothing to stop you topping up later.

If you google

"mortgage calculator ireland"- you'll get a lot of information.

mf

 

[Marocain]

Thanks for the response. I will look at the mortgage calculator. We had factored in fees and stamp duty, need to explore CGT further although As my father may be liable.
We have spoken with BOI and it would appear that the 70k would not be considered, we would still need 10 percent of the loan amount.