Nationwide gifted deposit letter...HELP PLEASE..

Thrugelmir

shamaila wrote: »

But what's worrying me is I don't want to refuse the case at this point when we are near to completion just because of what the solicitor has mentioned in the last paragraph?? Please help

Are you aware of the implications of the your brother gifting you money that you then use towards purchasing the property?

shamaila

Yes my brother is gifting
And I am aware of this

Thrugelmir

shamaila wrote: »

Yes my brother is gifting
And I am aware of this

Then if you are aware of the implication if the gift was to be rescinded . I would have no concerns with the letter.

The issue for the underwriters may be the source of the deposit.

shamaila

"I understand that if the money is not intended as a true gift that there are other methods by which we can protect our financial interests and we understand the importance of seeking independent legal advice and have had the opportunity to do so"

Does the last paragraph not mean if nationwide thinks the gift is not true then the people giving gifts can prove there are other ways to prove to nationwide the money is theirs??

Can someone please explain on simple words. Thanks

GMS

shamaila wrote: »

"I understand that if the money is not intended as a true gift that there are other methods by which we can protect our financial interests and we understand the importance of seeking independent legal advice and have had the opportunity to do so"

Does the last paragraph not mean if nationwide thinks the gift is not true then the people giving gifts can prove there are other ways to prove to nationwide the money is theirs??

Can someone please explain on simple words. Thanks

A donor could look to take a charge on the property, behind the lender. A lender would not allow this so the last paragraph is to state that the donor understands that they have not protected their monies and have acknowledged that they know legal advice can be sought in relation to this.

Basically saying that you knew you could protect the monies but chose not to.

Katpin

hey, just from a complete novice's point of view. we got a mortgage through nationwide about 3 months ago and we had a portion of our deposit that was a gift from my OH's parents.

We used a very similar letter to what Dave has posted and nationwide were fine with it - mortgage went through and we now live in our new home.

Only thing I would say that differs slightly is that we were already a nationwide customer - porting our existing mortgage and effectively getting a 'top-up' for the additional funds required.

Thrugelmir

shamaila wrote: »

Can someone please explain on simple words. Thanks

The gift could be clawed back. Which would result in you either having to either repay the gift yourself or the property being sold to discharge the liability.

Wh05apk

shamaila wrote: »

"I understand that if the money is not intended as a true gift that there are other methods by which we can protect our financial interests and we understand the importance of seeking independent legal advice and have had the opportunity to do so"

Does the last paragraph not mean if nationwide thinks the gift is not true then the people giving gifts can prove there are other ways to prove to nationwide the money is theirs??

Can someone please explain on simple words. Thanks

Personally I think that the inclusion of this implies it may not be a gift, lenders are twitchy enough about detail, and this could cause further questions, it does not add anything to the letter so keep it out, keep the letter simple, give the lender what they want, and no more.

mumps

Wh05apk wrote: »

Personally I think that the inclusion of this implies it may not be a gift, lenders are twitchy enough about detail, and this could cause further questions, it does not add anything to the letter so keep it out, keep the letter simple, give the lender what they want, and no more.

I see it as meaning they do understand the difference in a true gift and not a true gift and they are acknowledging they know they could seek legal advice, they can't then say at some future date, "I didn't understand what I was signing."

Dave_Ham

Hi all - the solicitors letter is more detailed, but says the same thing.

As previously stated, just use the standard template I posted as we all agree they will accept this.

The last paragraph means that the person realises what a gift is and accepts that.

Use the template, try to stop worrying and enjoy your new home..