Loan to value ratio questions

phester

Registered User
Messages
138
I have been shopping around for a mortgage and have 1 question that really confuses me.

I am tryign to buy a house ( inherited by my parents) and we have agreed a sale price of around 240k. the house is valued at 270 - 310 and even at that it need a full extension rebuild and renovations.

When quoting LTV do i have to use the sale price or the quoted price.

I have not seen a solicitor yet to see if we can sell below market value. My parents still have to pay Capatial gains Tax or similar since she inherited the house in 2000.

Any information is much appreciated
 
The value of the house should be used when calculating the LTV ratio. Not the sale price.
Also CGT wil be assessed on the value of the house - not the sale price if it is lower than the value.
 
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