Mortgage question - complicated

tfarrell

Ok here goes..
so we are looking to buy a house worth €335k. We have cash of €255k and my mother will lend us money for balance. We were going to offer €315k. So bascially get a lend of €60k from my Mam. We can apply for a mortgage in 3 months and would be entitled to €120-€130k on my husbands wages, but he just needs 3 more months payslips before we can get it. My question is can I get the lend of my mother now to buy the property and then in 3 months apply for the mortgage say for €80k. Pay my Mam back €60 and use the balance to do a much needed extention/refurb on the house. Hope Im making sense. Bascially we want this house but when we can get the mortgage I want my Mam paid back and just have one debt to the bank. Spoke to AIB and they said they could look into it when mortgage is approved. But I would love to know has this ever been done? Appreciate any light anyone can shed on this one.

D3PO

there shouldn't be an issue with this. Your essentially looking at an equity release on the house.

NIMAN

IF there was a house for sale for 335, I would be offering a lot less than 315 to be honest.

But then I don't know where the property is, what its like etc, but house prices in this country still are not at the bottom in my opinion, and if I was looking for 335 for a house, I woukld be expecting offers from 250k upwards.

tfarrell

house is in dublin 4. thanks for the replies, I just got the vibe from the girl in AIB that is not something that is ever done.

Ritchi

My brother did something similar a few months ago. Bought a place with cash, and took out a mortgage with AIB to repay the amount back to a family member.

Uriel.

tfarrell wrote: »

house is in dublin 4. thanks for the replies, I just got the vibe from the girl in AIB that is not something that is ever done.

offer about €280k max to begin with and reduce the amount you need to borrow off your mam.

Henry Ford III

I'd say wait until you qualify for the mortgage.

Why not wait a few months and not involve your mother at all?

D3PO

Uriel. wrote: »

offer about €280k max to begin with and reduce the amount you need to borrow off your mam.

I love how all the experts on here know what a reasonable offer is without having any detail on the house :rolleyes::rolleyes:

Uriel.

D3PO wrote: »

I love how all the experts on here know what a reasonable offer is without having any detail on the house :rolleyes::rolleyes:

who said I was an expert? do you see the harm in offering lower than the asking price?

D3PO

Uriel. wrote: »

who said I was an expert? do you see the harm in offering lower than the asking price?

It depends entirely on the situation, like how good the original asking price is in the first place and how likely it is to attract a lot of interest.

Its a house in D4 from what I can gather. A pretty popular area. By all means get a good deal but come in too low off the bat with a lot of other interest and your likely to be categorized as a time waster and not considered genuinely in the sales process.

Throwing random figures out like you have is exactly that random.

Marcusm

tfarrell wrote: »

house is in dublin 4. thanks for the replies, I just got the vibe from the girl in AIB that is not something that is ever done.

It's a nice enough looking house although the agent shouldn't describe it as Sandymount as it's on the wrong side of the river. My advice would be to get the mortgage approved and draw it down for the purchase retaining some of your own funds for the extension/refurb. If your desire is to make sure you don't have a loan from your mother for a while, that's the only way f ensuring it. Also it means that you and not the bank is in control post purchase. Anything non standard (such as a refi or funding for refurb) will fall behind funding for a purchase plus you'll pay more for the legals plus possibly more for surveys.

roro2

A little over 1% of mortgage transactions in Q4 were equity releases, according to the IBF statistics, so it's not that common anymore. While there shouldn't be an issue if you meet the lending criteria, banks prioritise lending to first-time buyers and mover-purchasers (94% of lending at the moment). If you wanted to maximise your chances of mortgage approval, wait the three months.

Ray Palmer

NIMAN wrote: »

IF there was a house for sale for 335, I would be offering a lot less than 315 to be honest.

But then I don't know where the property is, what its like etc, but house prices in this country still are not at the bottom in my opinion, and if I was looking for 335 for a house, I woukld be expecting offers from 250k upwards.

Houses in Dublin are selling pretty close to their asking prices. To expect a 25% cut to the asking price is most likely mean you would be disregarded by the agent and seller.

Let me guess you have never bought a house in your life :rolleyes:

NIMAN

I've bought 2, and sold one in this recession, in a country with one of the worst housing crisis burst bubble ever.

I have heard that house prices in Dublin are on the rise, well thats if you believe certain media outlets. Plus a lot depends on whether the asking price is realistic to begin with.

I did say that I didn't know anything about the house, as the OP had given no details at the time. Personally, D4 or not, I still think I would be offering a lot less than 20k below the asking. But then again I don't know how badly the OP wants this particular house. For me, the country is full of houses for sale, and another one will come up again.

Its still a buyers market, despite what some will have you believe.

The_Conductor

NIMAN wrote: »

Its still a buyers market, despite what some will have you believe.

Its not a buyers market- its not even a single market- its a series of markets that have diverged wildly from one another. Houses in D4 and D6 are in very short supply, and there is not shortage of young families in particular, willing to offer what it takes to secure a house (as opposed to an apartment) in these areas. Next to no development of houses occurred in these areas in the last 20 years.

Apartments, on the other hand, are in plentiful supply, even in the D4/D6 areas (thankyou Bernard McNamara et al.). A lowball offer on an apartment would likely be successful- providing you weren't taking the piss with your offer.

The rest of Dublin- it depends on availability- but if you look west to Lucan- prices are still in freefall- some properties valued at 500k at the peak, are successfully selling in the 135-150k ranges (mostly executor sales). If you look outside the Pale- prices haven't fallen as much as they fell in the greater Dublin area- however, they most certainly are continuing to fall- esp. where massive over development occurred. Some quite reasonable areas in the midlands- think Portlaoise, Monasterevin, Tullamore, Athlone- are seeing reductions in the rate of property price falls, however, the falls are continuing.

Some small micro-markets in rural areas (such as the unusual circumstances in Co. Clare) are promoting small increases in prices- despite otherwise negative sentiment.

There is not an 'Irish' property market- and its very much a lack of appreciation of how different property types and different areas of demand have diverged, if you think that there is an 'Irish' property market.

Only in areas where very limited development occurred, and there is an innate demand for residential property, has a floor been established on prices for certain property types (read freehold houses here). Leasehold residential property, even in high demand areas such as D4/D6- is continuing to fall.

mel.b

smccarrick wrote: »

Some small micro-markets in rural areas (such as the unusual circumstances in Co. Clare) are promoting small increases in prices- despite otherwise negative sentiment.

Hi,

Can you elaborate what you mean with regards to Co.Clare. I'm looking at buying in Clare atm and am finding stock levels, esp for good family homes poor, and even worse if you are looking in a radius of 15-20km of Ennis and not something on .5+ acre. I put in offer in earlier this week which was rejected.

Sorry OP for hijacking you thread!

whatnext

to all the go in low experts I'll give you a little tale from less than a month ago.

My sister sold / went sale agreed on her 3 bed semi in a South Dublin suburb in less than 2 weeks with 4 offers, price agreed is 30k over the asking price. There is still a couple trying to offer more directly, but have no finance arranged.

Its war out there for the right property. She was advised to hold out for more but went with the one that could complete quickest as she's emigrating.

Have to admit I was shocked, but family homes in certain established areas are gold dust.

The_Conductor

mel.b wrote: »

Hi,

Can you elaborate what you mean with regards to Co.Clare. I'm looking at buying in Clare atm and am finding stock levels, esp for good family homes poor, and even worse if you are looking in a radius of 15-20km of Ennis and not something on .5+ acre. I put in offer in earlier this week which was rejected.

Sorry OP for hijacking you thread!

Its a combination of factors- most of the building that occurred in Co. Clare in the past 15 years was one-off units. Builders from Clare found better opportunities for building multi-unit developments elsewhere. Some of the larger contractors in the Kildare area were from the Clare and Galway areas.

In addition to this- planning permission in Clare, was a hell of a lot harder to come by than in many other parts of the country- apparently the councillors there actually evaluated requests as they were supposed to do, and were in fact complimented on following the national spatial strategy, even when it had been abondoned for all intents and purposes elsewhere.

So- you had very limited supply of new builds- at a time where instead of traditional emigration occuring- you had net inward migration, alongside job opportunities (albeit limited in nature), where companies had not considered setting up/expanding previously.

Supply and demand- constrained supply, and increased demand- equals a property micro-market in a place you'd least expect it..........

the groutch

Ray Palmer wrote: »

Houses in Dublin are selling pretty close to their asking prices.

which estate agents or other vested interest are you working for?

tfarrell

family homes in dublin 4 are few and far between (well under the €500k mark) so there are alot of people coming through the doors. Out of all the properties Ive seen over the past few months I bid on 4 and all went for higher than the asking, some like crazy higher!!! The property in question already has 3 offers on it, I reckon I know what Im doing as regards of buying and bidding as Ive bought 3 houses around the area. Got the answer to the question regards of equity release, so thanks a lot for all the replies, much appreciated!