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Are my solicitors going to kick up a fuss?
DJ_Mike
Posts: 250 Forumite
When I signed my contracts, I (perhaps foolishly) told my solicitors that part of my deposit was a "loan" from my Mum that was repayable if I ever sold the house. Apparently this meant they had to hold things up as they were law-bound to notify my mortgage lender about the situation.
Fair enough, can't be breaking the law after all.
When it got to Abbey, their underwriters asked (via my broker) for a letter to be supplied regarding the deposit. My broker recommended that if my Mum could possibly make the deposit a gift (i.e. no repayment required), then it would save a whole lot of bother. I've read that, if it were a loan, I'd really need some legal document between Mum and myself confirming that the loan would be repaid and under what conditions.
So long story short - Mum wrote a letter stating her share of the deposit was a gift that is non-repayable, and she has no interest in the house. Abbey's underwriters are completely happy with this.
However, my worry is that my solicitors will now kick up a fuss when they get the response (sometime, Abbey are being a bit slow to fax them) - I told them it was a loan and Abbey will now say it's a gift.
Will they just accept this based on Mum having signed that letter to Abbey, or am I in for more of their shenanigans?
Any advice appreciated!
Fair enough, can't be breaking the law after all.
When it got to Abbey, their underwriters asked (via my broker) for a letter to be supplied regarding the deposit. My broker recommended that if my Mum could possibly make the deposit a gift (i.e. no repayment required), then it would save a whole lot of bother. I've read that, if it were a loan, I'd really need some legal document between Mum and myself confirming that the loan would be repaid and under what conditions.
So long story short - Mum wrote a letter stating her share of the deposit was a gift that is non-repayable, and she has no interest in the house. Abbey's underwriters are completely happy with this.
However, my worry is that my solicitors will now kick up a fuss when they get the response (sometime, Abbey are being a bit slow to fax them) - I told them it was a loan and Abbey will now say it's a gift.
Will they just accept this based on Mum having signed that letter to Abbey, or am I in for more of their shenanigans?
Any advice appreciated!
0
Comments
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Should be OK. Your Mum has now put in writing that it is a gift. If the solicitors ask just tell them that you didn't want to presume that no repayment was required so considered it a loan, now your Mum has decided its a gift.
Parents are allowed to change their mind, especially when they are being generous.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Don't worry about it, you are their client and paying them a feeChuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0
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chucknorris - I'm aware of that
But it's the legal aspect that worries me - it was legalities that got me into a 2 week wait in the first place! 0 -
Just simply inform your solicitor that there has been a change of circumstances, they are there to help you not hinder youChuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0
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You won't have any problem. If its in writing by your mum that its a gift and that she has no interest in the property, then the lender will be happy as there is no way that she can come back later and claim an interest for repayment.For every complex problem there is an answer that is clear, simple and wrong.0
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Thanks for your responses everyone! Hopefully Abbey will finally fax my solicitors today, but at least I'm at ease that they're unlikely to hold things up any longer!
Cheers!0
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