Buying Houses From Owners Desperate to sell Advice??

[propertytorent]

Hi
I am looking to buy houses from people who are desperate to sell for various issues ie repossesion etc

I have bought houses in past that are worth 80 for say 60 Direct saving them estate agents fees and paying their solicitors bill
Is there Anyway that you can get the property valued for the 80k (Which is current value) that it was clearly worth and be able to mortgage it against the 80 instead of the 60?

I know some companies are going down the route of charging the vendor say 20k for work that isnt done. Vendor will still get the 60k as they owe company 20k. But the mortage company will then value it as 80k
So deposit will be 16k when valued at 80k and therefore get a property to rent out using none of their money and in fact getting 4k back?

Is there away to do this without tax costs and what do you need to tell the mortagage company? Also is this legal?

this is my first post so be gentle

thanks

[propertytorent]

help
not sure where ive put this post?

[brian]

The mortgage company will lend against the purchase price, not an abstract valuation.

It doesn't matter whether a property "may be" valued at £80,000 or £800,000 - if you're buying for £60,000 that's what they'll lend against.

Any potential extra value is simply a safe equity buffer for the buyer, and the mortgage company has no interest in that - unless they find they have to repossess from you.

Attempting otherwise may be regarded as mortgage fraud.

[propertytorent]

Thanks Brian
So does that mean if i gave them 80k for the house and then got solicitor to hold and return 20k to me obviously with the vendor agreeing to this it would be mortgage fraud? Even if i invoiced them 20k for work
thanks

[brian]

I'm not a solicitor, but I think you would certainly be subject to that accusation, and it's a serious one.