can you protect a gifted deposit

smiler123_2

Hi
just a quick one everyone
me an my husband are in the process of buying a propoerty we have had an offer accepted on a house for £112500 eveything is in place heres the fly in the ointment


My mum is giving us a gifted deposit of £60000 we have £10000 saved an i am gifting my husband £10000 an a mortgage of £32500 an heres why, i cannot get credit so my name wont be on the mortgage ,now on appointing a solicitor he thinks my mum should seek legal advice regarding giving the gifted deposit as im not protected an if were to divorce he could kick us out an be sitting quiet legally in his own house.

Now is there any thing we could put in place to say he cant kick me out whilst he his paying a mortage,he is only getting a mortgage for 10 years an once that is finished my name would be added to the deeds...



anyone got any advice xx

Dave_Ham

Your Solicitor is recommending that you and Mum get independent advice. I can save you the bill, as the independent advice will be this is not a good thing to do.

Whilst I would imagine Mum has had to sign a gift letter to the bank, saying that she waives all rights to the money and has no interest in the property as it is a gift, she can put some protection in place.

You can have independently drawn up a deed of trust between the 3 of you, although this will not be 100% bulletproof.

You also have to look at how appropriate it is to tell the mortgage company it is a gift, when it is not. Someone on here at some point will say this is mortgage fraud...

The above is down to you, but this is essentially what independent legal advice will tell you although probably ina more articulate manner.

smiler123_2

Dave_Ham wrote: »

Your Solicitor is recommending that you and Mum get independent advice. I can save you the bill, as the independent advice will be this is not a good thing to do.

Whilst I would imagine Mum has had to sign a gift letter to the bank, saying that she waives all rights to the money and has no interest in the property as it is a gift, she can put some protection in place.

You can have independently drawn up a deed of trust between the 3 of you, although this will not be 100% bulletproof.

You also have to look at how appropriate it is to tell the mortgage company it is a gift, when it is not. Someone on here at some point will say this is mortgage fraud...

The above is down to you, but this is essentially what independent legal advice will tell you although probably ina more articulate manner.

Thanks Dave

It is defo a gift my mum was really dissapointed that i could not go on the morgage as after all i am her daughter but until yesterday she was just going to gift it to my husband but now the conveyancing solicitor has sprung this up so i would not of thought it was classed as mortgage fraud as we are trying to defraud noone but will go an seek advice anyway now...

GMS

You may well find issues with the lender accepting a deposit from somebody who will reside but not party to the mortgage. It could well be argued that the deposit from your Mum is for you rather than your husband as you are the family connection.

Your 10k is clearly yours and could cause problems.

Make sure the lender will accept the scenario prior to application as it could all go wrong at completion leaving you disappointed and out of pocket.

What is your credit problem(s)? Are you certain you couldn't get a mortgage?

harvey115

Dave is not suggesting that giving a healthy some as gift is fraud.

He mentioned that getting a mortgage from a lender by telling them its a gift from relatives would get you the mortgage. However in order to secure you from any future mishaps you would need to somehow introduce some sort of protection in the deeds. This of course goes the other way to gifted deposit, as you would want some sort of protection by providing the 'gift', thus renders the gift as not really a gift.

Sorry if I have confused you further in this matter.

You should seek advise on this matter for sure.

martinsurrey

As you are married if you split up it will be the courts to decide how to split assets and liabilities, a deed of trust will show what was agreed but will not be binding (in the same way as a pre nup).

The solicitor is being prudent, and rightly so, if everything went 50/50 in a divorce your husband would get half of the equity, which is currently mainly contributed by your mum.

there is no real out of this, if your mum puts conditions on the gift (such as "in the case of divorce the gift is returnable"), its not going to get past the mortgage company.

getmore4less

Whats the maximum hubby could borrow on his own?


Still not clear how much your credit problems would effect a joint application.

System

A gifted deposit, by its very nature can not be protected. If it is not an outright gift with no strings attached then it effectively becomes a loan, albeit one that may never need paying back.

Thegirl

The mortgage your husband would be getting is for 29% of the property price, in these circumstances have you approached the mortgage company about you going on the mortgage? Unless you are bankrupt (I presume this unlikely with your savings), with such a low loan to value rate it seems odd they would not consider it. Or could you not own half outright (with the money gifted to you from your mother) and he mortgage with your savings and gift on the other half? (I don't know if that's actually possible, just and idea).

Concerning the gift from your mother, as others have said, it's a gift, no strings, although I assume that a judge would consider this in any settlement should you divorce.

Thrugelmir

Thegirl wrote: »

although I assume that a judge would consider this in any settlement should you divorce.

Again no as its a gift, no strings or conditions. There's legal no documentation to support any claim.