Buying a House with parental help!!

crusty_toenail

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poppy_f1

yes its ok for him to gift you this money, your mortgage company may ask for a letter to confirm it is a gift not a loan
my mum gave me the money for my deposit and thats what we had to do

crusty_toenail

poppy_f1 wrote: »

yes its ok for him to gift you this money, your mortgage company may ask for a letter to confirm it is a gift not a loan
my mum gave me the money for my deposit and thats what we had to do

Thanks, so is the 3k gifting allowance per year 'pet' only applicable for Inheritance tax if he passes away within 7 years of the gift and his estate is over the inheritance tax limit???

Does anyone know???;)

Cannon_Fodder

http://www.hmrc.gov.uk/inheritancetax/intro/basics.htm#4

Also, large lump sums leaving his estate may draw attention of those interested in deprivation of assets.

crusty_toenail

Cannon_Fodder wrote: »

http://www.hmrc.gov.uk/inheritancetax/intro/basics.htm#4

Also, large lump sums leaving his estate may draw attention of those interested in deprivation of assets.

My dad would be well below the inheritance tax threshold should he pass away, and hopefully won't for a long time yet- so this gift to me of 50k - is this okay????

sonastin

Depends what you mean by "okay".

It is permitted legally.

Mortgage companies will accept it as a deposit but might need some additional paperwork to satisfy themselves that there isn't going to be an additional charge on the property or loan repayments to skew the affordability assessments.

There may be tax or benefit implications due to providing the gift but these will depend on future events that the posters on this forum can't predict. Inheritance tax and deprivation of assets being the big 2.

If you can live with these risks and your dad is happy to live without his £50k, I would say it is probably OK but you and your dad are the only ones who can actually make that decision.

PasturesNew

£50k ... let your dad know that if he ever wished he had a bigger family ... I'm available for adoption.

QTPie

We recently received a cash gift from my in-laws (£250k in all, but only £95k of that is towards the house purchase - the other £155k for stamp duty and renovations). It caused ALL KINDS of hassle with the mortgage lender (despite or deposit being £95k from the in-laws and £330k from our own money - equity from the last house and savings...).

FIL completed a gifted deposit form at the start if the application, but their head office insisted on going through everything with a fine toothed comb (they must have suspected us of money laundering...). On top of the gifted deposit form, the wanted:
- copy of my bank account statement showing the money in my account.
- copy of the CHAPs transfer receipt showing the money being transfered to me from the FIL.
- copy of my FIL's bank statement showing the money being transfered to me (FIL refused to do this - sent a letter of reference from his personal banker instead).
- they wanted to know what my FIL does and how he accumulated the money.
- they wantedto know what we intended todo with the rest of the money. They started to get funny when we said "renovations", so husband said "put in a new kitchen and buy a Ferrari"

All finally ok, but the questions dragged on for weeks! So be prepared fir that...

QT

pawpurrs

Never mind Crustys family, can I be adopted by Mr QTpies family, please. Thats a whole house worth of money, for us pawpurrs!:D

poppysarah

I can not believe parents are so generous.

As long as they are not deliberately depriving themself so they can claim benefits...

QTPie

poppysarah wrote: »

I can not believe parents are so generous.

As long as they are not deliberately depriving themself so they can claim benefits...

No - at least not in my case - live abroad (maybe partly why the money laundering suspicion) and wouldn't dream of (or qualify for) benefits. Infact they are very supportive of charities etc.

Pawpurrs, one of the family is looking to adopt, but you might be a little old (unless you are an incredibly gifted typing baby....) . Plus they have beentold that they have little to no chance of adopting in the UK (because of racial matching criteria)

QT