Buying family member's house

M

maghreb

Guest
Hi ,
Need some advice please - we(a family of four,combined income 44k) are currently renting my fathers's hse at 700E p/m.He is willing to sell the house which is currently valued at 150K for 120K.Can we include this 30,000K as part of our savings .We only have 6,000 saved , no debt .What are our chances of a mortage ?
 
maghreb said:
Hi ,
Need some advice please - we(a family of four,combined income 44k) are currently renting my fathers's hse at 700E p/m.He is willing to sell the house which is currently valued at 150K for 120K.Can we include this 30,000K as part of our savings .We only have 6,000 saved , no debt .What are our chances of a mortage ?
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Hello,
it's very difficult to make out exactly what you are asking. Can you be clear about what the house is costing and where is this €30k coming from? Not enough information given to answer your question about a mortgage.
 
I understands what she/he means. As they are getting the house for €30K less than the value, they are wondering if this can be added to their deposit. The answer is no.
 
"current value" means nothing, the only value that matters is what you pay for it.

The bank will want to get 8%(AIB) or 10%(BOI) for a deposit and you will need another c.€4,000 for solicitors fees etc

They are only interested in your combined income if you are both permanent at the moment

If you go in and speek to them they might give you an offer in principal to give you an idea of what you will need
 
If I understand correctly I suspect that you can do what you are suggesting.

1. The house is recently valued at 150k (written valuation).
2. You have 6k savings (and can show evidence of this - e.g. bank record).
3. You are looking to borrow 114k to purchase the house (76% loan when compared to the written value)
4. The 30k difference is effectively being "gifted" by your father to you.

The challenge you have is that the bank is probably ok to lend 76% of the property value (114k loan if you are paying 150k), but will not be comfortable lending 95% (114k loan if you are paying 120k price). So you need to be able to evidence to the bank that 150k is the fair value and is what you are actually paying. Your solicitor can probably advise you on how best to deal with the notional 30k gift from your father in order to allow the transaction to take place. In summary, to me there are two separate transactions taking place simultaneously:
1. You father is gifting you 30k.
2. You are buying a house to the value of 150k.
 
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