gifted deposit

caz28_2

After reading some of the comments on gifted deposits. we have just had a potential buyer who wants us to give them a gifted deposit. Our house is on the market for just under 120K and they want to offer 126K and use the 6K as a gifted deposit - does this come under the "fraud" bit as they are inflating the house price but if they inform the lender what they are doing and that the original price was 120K does that make it legal.

DVardysShadow

Never mind legal, that is not your problem. The real problem is that these people obviously don't have all the equity they need.

Where this goes wrong is if the surveyor ever realises your house was on for less than 120 and values it accordingly - or if the lender realises what is going on.

Bananamana

The solicitor/conveyancer acting for the bank has a duty to disclose it. It's only mortgafe fraud if they don't.

Stamp duty is calculated on 126 however so unless they are FTB or in a disadvantaged area they will be liable for 1%

I'd make sure ther broker has agreed it with the lender and you see some evidence of it before proceeding. Otherwise they could just be wasting your time (and money)

Running_Horse

Tell them to go away and save up a deposit like every other house buyer, and then sell it to someone who can afford to buy it. Their inability to afford to buy your house is not your responsibility. Why are they even looking?

betmunch

Dont agree to this. Assuming everyone does their job correctly this wont work.

While it is legal it will need to be declared to the surveyor who will need:
a. proof the property was marketted ar £126K
b. the belief the property is actually worth £126K

If either doesnt fit then the mortgage application will be turned down.

Now if you are prepared to accept £114K for your property and gift the buyers £6K that way you have a half decent chance of it going through!

DVardysShadow

betmunch wrote: »

Dont agree to this. Assuming everyone does their job correctly this wont work.

While it is legal it will need to be declared to the surveyor who will need:
a. proof the property was marketted ar £126K
b. the belief the property is actually worth £126K

If either doesnt fit then the mortgage application will be turned down.

Now if you are prepared to accept £114K for your property and gift the buyers £6K that way you have a half decent chance of it going through!

Dont agree to this. Assuming everyone does their job correctly this wont work.

While it is legal it will need to be declared to the surveyor who will need:
a. proof the property was marketed at £120K
b. the belief the property is actually worth £120K

If either doesn't fit then the mortgage application will be turned down.

Now if you are prepared to accept £108K for your property and gift the buyers £6K that way you have a half decent chance of it going through!

Dont agree to this. Assuming everyone does their job correctly this wont work.

While it is legal it will need to be declared to the surveyor who will need:
a. proof the property was marketed at £114K
b. the belief the property is actually worth £114K

If either doesn't fit then the mortgage application will be turned down.

Now if you are prepared to accept £102K for your property and gift the buyers £6K that way you have a half decent chance of it going through!

Dont agree to this. Assuming everyone does their job correctly this wont work.

While it is legal it will need to be declared to the surveyor who will need:
a. proof the property was marketed at £108K
b. the belief the property is actually worth £108K

If either doesn't fit then the mortgage application will be turned down.

Now if you are prepared to accept £102K for your property and gift the buyers £6K that way you have a half decent chance of it going through!

Dont agree to this. Assuming everyone does their job correctly this wont work.

While it is legal it will need to be declared to the surveyor who will need:
a. proof the property was marketed at £102K
b. the belief the property is actually worth £102K

If either doesn't fit then the mortgage application will be turned down.

Now if you are prepared to accept £96K for your property and gift the buyers £6K that way you have a half decent chance of it going through!

It might be a slippery slope.

SimonMrGreenWard

Can be done, but I guarantee it won't value up. Bank have to be informed and they'll in turn inform their surveyor and at best, the figure will be the original price that you've got it on for.

Big waste of time in this market.

betmunch

DVardy - I see your point, but its up to the Vendor to agree a price they are comfortable with, they have to stop the slide if the price goes to low.

Mr Green - Agreed, valuer will simply say its worth the price after the gifted deposit rather than before. Waste of time!

poppy10_2

Yep, this won't work, unless the buyers fail to disclose it to their mortgage company, which would be fraud.