Advice please: FTB making an offer

MedusasBadHairDay · 2021-04-05T11:39:54+00:00

We've seen what looks like the perfect property, and are going to a viewing tomorrow. If it's as good as it looks we'll obviously want to make an offer, but I've got a little nervousness around it, so advice would be welcome. We can absolutely afford it, but are unlikely to be able to provide proof straight away. We need to wait until tomorrow to get the AIP (after DH had submitted his tax returns) so that's not too bad, the problem is with us using equity from MILs house as the deposit - were currently waiting for the offer to come through, but it's all happening very slowly, and we haven't been given a timeframe for it being done. Maybe we should have held off on the viewing, but this place looks too perfect. Dov you think we'd be able to put an offer in knowing the proof is imminent but not quite ready?

ComtesseDeSpair · 05/04/2021 13:38

It would really depend on the seller, to be honest. I wouldn’t accept an offer from buyers in your position because there are far too many unknowns: will your MIL even sell her house soon enough, will she actually give you the money in the end. I’d want a buyer to either be selling their own property and have it already under offer, or to have their deposit ready and available.

Bluntness100 · 05/04/2021 13:41

I’d prob tell you to come back to me when you were proceedable. I don’t understand what you mean waiting for an offer to come through though, a offer is either made or it’s not.

BlueCherryBlossom · 05/04/2021 13:43

Do you mean your MIL is awaiting a remortgage offer OP?

Original poster

MedusasBadHairDay · 05/04/2021 14:06

@ComtesseDeSpair

It would really depend on the seller, to be honest. I wouldn’t accept an offer from buyers in your position because there are far too many unknowns: will your MIL even sell her house soon enough, will she actually give you the money in the end. I’d want a buyer to either be selling their own property and have it already under offer, or to have their deposit ready and available.

She's not selling her house, she's releasing some of the equity in it and gifting it to us.

She's had a valuation of her property, confirmed how much she wants to borrow, and is now just waiting for them to formally offer her an agreement. Once she's accepted then the funds will be on their way. Apparently we can use this offer as proof that the funds are definitely there.

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Bluntness100 · 05/04/2021 14:07

It’s not very clear what you mean at all op.

What is clear though is you’re totally unproceedable at the moment, and have no idea when you will be, so really it’s unlikely anyone would accept and take their property off the market, decent agents will recommend against it. You may get one who accepts but they would likely keep it on to see if anyone proceedable offers.

Bluntness100 · 05/04/2021 14:08

She's not selling her house, she's releasing some of the equity in it and gifting it to us

It’s not an equity release firm is it? I really hope it’s not, the amount that’s to be paid back is astronomical.

Original poster

MedusasBadHairDay · 05/04/2021 14:09

@Bluntness100

I’d prob tell you to come back to me when you were proceedable. I don’t understand what you mean waiting for an offer to come through though, a offer is either made or it’s not.

She's asked for a certain amount based on her property being worth at least X. We are just waiting on confirmation they will honour it, given they valued the property higher we know we're getting that amount, just need it formalised.

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Original poster

MedusasBadHairDay · 05/04/2021 14:11

@Bluntness100

She's not selling her house, she's releasing some of the equity in it and gifting it to us

It’s not an equity release firm is it? I really hope it’s not, the amount that’s to be paid back is astronomical.

She's using a financial advisor to make sure she gets a good deal, and she can definitely afford it. We wouldn't let her do it otherwise.

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ComtesseDeSpair · 05/04/2021 14:20

Then I think you need to explain very clearly to the estate agent, when you make your offer, what the situation is and ask that they explain this very carefully to the seller as well, when they put your offer forward, so that they understand you aren’t time wasters with no money.

I still wouldn’t accept your offer at this stage unless I’d had no other interest. If there were buyers in a more traditional financial situation then I’d accept their offers over yours until you had the deposit in your bank account.

ArosGartref · 05/04/2021 14:29

If it's a good house, there will be plenty of people who have the deposit and an agreement in principle wanting to buy it.

I don't see how you can make an offer when you don't have the funds.

ComtesseDeSpair · 05/04/2021 14:43

As an aside, you’ll also need to make sure your lender a accepts deposit given in these sorts of circumstances, and doesn’t consider it a loan because of its origin and reject it: it’s one thing for a parent to use money they have in savings to give their child a deposit, but another when they’re remortgaging their own home / borrowing against their home to do so. MIL will need to declare that this is a gift and not a loan and that she isn’t expecting help from you and DP to repay her debt.

Original poster

MedusasBadHairDay · 05/04/2021 15:05

@ComtesseDeSpair

As an aside, you’ll also need to make sure your lender a accepts deposit given in these sorts of circumstances, and doesn’t consider it a loan because of its origin and reject it: it’s one thing for a parent to use money they have in savings to give their child a deposit, but another when they’re remortgaging their own home / borrowing against their home to do so. MIL will need to declare that this is a gift and not a loan and that she isn’t expecting help from you and DP to repay her debt.

Yep, we'd already taken that into account 🙂 So that's less of a worry thankfully

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Changingwiththetimes · 05/04/2021 17:04

View the house. If you live it, then book a second viewing for a few days later. Then if you love it enough to make an offer, see if your MIL can get an answer from her mortgage/equity release company if she hasn't heard by then. If you make an offer the agent will ask for proof of funds, so you need these to hand.

Original poster

MedusasBadHairDay · 05/04/2021 18:09

@Changingwiththetimes

View the house. If you live it, then book a second viewing for a few days later. Then if you love it enough to make an offer, see if your MIL can get an answer from her mortgage/equity release company if she hasn't heard by then. If you make an offer the agent will ask for proof of funds, so you need these to hand.

I assume that's probably a good idea regardless isn't it? Would feel weird making such a big purchase on something I've only looked at once (I'm the type to shop online, and leave things in my basket for weeks while I decide if I'm sure, so this is terrifying)

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