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Hi, could you just please clarify exactly how much you would like to receive for the property? Is it £140,000 and you had hoped that your Son can repay you the additional £20,000 at some point in the future? Kind Regards Al
Hi, apologies for the delay. You will be able to sell to your Son at less than the market value. As your Son would be able to get a Mortgage for 140K, his Bank would normally require this to be the Purchase price. (Although you are "prepared" to sell for 160K, with you giving your Son the 20K, the Bank will normally disregard this additional 20K, as they are only interested in assessing the price on the physical amount of money your Son will be paying). Your Son should therefore apply for a Mortgage on the basis that the Price is 140K and explain that the Purchase is a family arrangement. As he will be buying for less than the market value, the Bank will be happy to lend him 100% of the Purchase price (provided he does of course meet their criteria borrowing 140K. I hope this assists and sets out the legal position. If so, please don't forget to rate my answer. Kind Regards Al