Buying my parents house - few Q's

[MX5_Nuts]

Myself and my partner are planning on buying my parents house which they want to sell to downsize. We're actually both living there at the moment so this would be really beneficial to us as we're first time buyers and saves messing around with various chains providing my parents can find an empty house to move into.

Am I right in thinking we don't need to go through an Estate agent as we are the buyers? They've visited one today just to arrange a free valuation which we'll obviously need. Also, can both myself and parents use the same solicitors to keep things simple/speed things up?

Appreciate these are probably daft questions but its all new to me..

Thanks

[MX5_Nuts]

Thanks again Sarnie

[MX5_Nuts]

Gareth79 said:

Presumably the mortgage company might object to the vendors still living in the house at sale time, since it wouldn't be vacant possession? Possibly since it's family that might be acceptable though?

Ahh would this really likely cause a problem? This didn't cross my mind

[MX5_Nuts]

Heres how it is with us... currently living with parents searching for a house to buy (first time buyer with my partner). Parents are looking to downsize so will be selling up... House ticks every box for us so agree to buy it at market value... Once mortgage completes, parents move out as soon as they find somewhere suitable within 12 months paying no rent at all.

How can this be so bloody complicated? Why would we need to MOVE OUT and then MOVE BACK in just to complete the sale when we already live here?!

Makes no sense at all.

We'd have to look for somewhere to rent for a couple of months, which would be virtually impossible as most minimum contracts are for 12 months, and having a dog makes it even more difficult and its money wasted we cannot afford. And I presume my parents would have to do the same as they won't be allowed to be here once sale completes?

Will contact mortgage company to clear this up. If it really is this difficult then we'll have to look to buy elsewhere.

[MX5_Nuts]

Just spoke to Nationwide explaining this and she reassured me this won't effect the application at all. Both ourselves and parents will be able to live at the property during the sale until they find a property elsewhere

[MX5_Nuts]

Sarnie said:

Speak to your Solicitor........

Will do once the mortgage application goes through.

[MX5_Nuts]

Sarnie said:

Before then........don't rely on lenders call centre staff to know what they are talking about with what is a specific conveyancing issue.........

Oh right, I'll get in touch with one shortly! I've had enough of this palava already and its not even begun yet lol

[MX5_Nuts]

Sarnie - That's very thoughtful of you - thanks very much!!

I actually emailed a solicitor we dealt with in the past basically asking about this situation and this was their reply;

• ***************

Dear ..............

Thank you for your email of the 5th February 2017. Unfortunately we are not able to provide specific advice until we are instructed by clients to act on their behalf since, as you will appreciate, we need to have a full picture of the transaction and our clients’ circumstances before we are in a position to properly and fully advise.

On a general note, however, it is usual for a property to be offered with vacant possession unless it is being sold on a buy to let basis with tenants already in situ. Lenders do have differing criteria, and the scenario you describe would be considered on a case by case basis by lenders who would provide the solicitor acting for the purchaser with their specific requirements i.e what documents they may require the occupiers to sign before the transaction completes, if indeed they do not object to what is proposed.

We would not be able to act for you and your parents in the same transaction since each of you would have to have independent legal advice due to a conflict of interests.

Please feel free to contact me again by email or telephone if you would like to instruct me to act on your behalf.

Kind regards

• *****************

So basically we'll have to treat my parents house as we would buying any other house with an onward chain, meaning the sale won't complete until they've moved out and the house is empty... Is this correct?

Appreciate all of the advice so far guys I really am clueless to exactly whats involved when it comes to the legal side of buying..

[MX5_Nuts]

We'll only be paying 10K less than the actual property value - Is that enough to be classed as ''gift of equity''? The reason we wanted to sort it out now is my parents are waiting for inheritance money which is taking forever to partly fund their next home along with the sale and we wanted to speed things up by getting the sale completed beforehand and while the rates are low..!

What bks!

[MX5_Nuts]

boyse7en said:

Can't they sell you the house, including fixtures and fittings, "move out" for a day and then just be house guests for a few weeks? Seems a bit of a cheat, but then the rules seems a bit daft too.

Was thinking the exact same thing!

[MX5_Nuts]

Will my parents need a new onward address for when the sale completes? If so, that rules out them temporarily moving out.