Abbey won't accept deposit!

CindyC_2

Hi,
I am trying to buy a house to accomodate myself, my partner, my brother and mother. My brother and I have had an offer of a mortgage from the Abbey, but they will not allow my partner to supply the deposit as a gift to us, he has even got a Deed of Trust drawn up by his Solicitor to try and get them to let him supply the money. They will only accept either him not living in the house OR going on the mortgage. He doesn't want to be tied into a mortgage as he is over 60 now and that is why he is giving us the deposit. Any suggestions as to how we can solve this problem?

calleyw

I wonder if you where married if it would make a difference. I sold a property in my name and used the money that was made on it to pay the deposit on the new house. That was only in my husband name.

We had no problems. The solictor was asking me if I wanted to draw up paper work to protect it and I said no.

I am not suggesting you get married. But I can only assume they will not allow it. Just incase he wants the money back.

I don't think there is a way around it. Have you tried any other lenders or a broker as they can help when main stream lenders can't.


Yours

Calley

MarkyMarkD

There is a legal problem with adults living in a house, but not being a party to the mortgage. I can't remember the full details, but it boils down to it being hard for the lender to repossess in the event of default if there are people with a right to live in the house.

I think that's why they have a problem with the situation.

Wickedkitten

MarkyMarkD wrote:

There is a legal problem with adults living in a house, but not being a party to the mortgage. I can't remember the full details, but it boils down to it being hard for the lender to repossess in the event of default if there are people with a right to live in the house.

I think that's why they have a problem with the situation.

Our Mortgage is just in my partners name and all the mortgage company had me do was sign a Deed of Consent to say if they repossess, then I don't have a right to stay in the house.

CindyC_2

We have already done a Deed of Consent but Abbey still aren't satisfied. If we lose the house - which looks likely now - we will ask our Mortgage Broker NOT to use Abbey.

calleyw

Wickedkitten wrote:

Our Mortgage is just in my partners name and all the mortgage company had me do was sign a Deed of Consent to say if they repossess, then I don't have a right to stay in the house.

Yes I did sign one of those as well.


Sounds like Abbey are being difficult. No idea why.


Yours


Calley

lil_3

The lender is trying to protect their interest here. Regardless of whether your partner signs a 'consent to mortgage' form or similar, the fact that he is making a financial contribution to the purchase and will be living in the property would (in the Abbey's eyes0 give him rights over the property on a future resale. I would suggest that you call the Abbey's bluff over this one as I'm sure their underwriters could accept this situation, subject to an appropriate mortgage condition which would be acceptable to all parties.

MarkyMarkD

I agree with lil (or at least the first sentence of lil's post).

I don't believe that Deed of Consent forms entirely protect the lender's interests.

CindyC_2

Do you think another Lender, say Nationwide or Woolwich, would accept the deposit with the Deed of Consent? Or are we going to keep getting this problem?

MarkyMarkD

I think you need to go to a mortgage broker who has the necessary experience to find a lender who'll be happy with the situation.

stanmoresaver

CindyC wrote:

We have already done a Deed of Consent but Abbey still aren't satisfied. If we lose the house - which looks likely now - we will ask our Mortgage Broker NOT to use Abbey.

It's fairly basic stuff that most lenders will not allow this sort of transaction.

Agree totally with MMD.

SS