Also will have to pay stamp duty on the full market value, though that will be at half rate as you are buying from a relative. Check out revenue.ie.
Are you 100% sure its market value is 360k. you could argue that it wouldn't fare to well in the current market and that would see the sale price/market value ratio decrease. This is an opportunity to get on the ladder comfortably so look at every avenue to keep your outlays to a minimum.
But so what? You have saved €160k.
Speak to your solicitor about the vendor's right of residence in the property and how that will be structured. If a lender is aware of this, they may take a view. Example - You two take the mortgage...default on repayments...lender moves to repossess the house...runs into difficulty because granny has right of residence and cannot be evicted.
The grandmother could sign an agreement that if there is a default in the mortgage she would/could not claim her right of residence. As long as the bank see something like this they should be ok with a right of residence.
Are you sure that banks would be OK with this? I would have thought that most lenders would run a mile from having security which involves evicting a pensioner with no income. Can you see the tabloid headlines now?
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