Declaring a gift for mortgage app

seven-day-weekend

We gave our son a hefty sum as a house deposit (a genuine gift, he does not have to pay it back).

We did not have to prove to the lender where this money had come from, nor, AFAIR, sign anything. We just told the solicitor it was a gift.

holly_hobby

As we have said, a true non-conditional gift is absolutely fine.

However, you would have signed a gift declaration, as its a requirement of the lender in all cases - and is reqd to ensure the lender has no 3rd party beneficial right issues, that may prevent or obstruct succesful petition of a possession order.

Hope this helps

Holly

LittleMissAspie

holly_hobby wrote: »

As we have said, a true non-conditional gift is absolutely fine.

However, you would have signed a gift declaration, as its a requirement of the lender in all cases - and is reqd to ensure the lender has no 3rd party beneficial right issues, that may prevent or obstruct succesful petition of a possession order.

Hope this helps

Holly

My parents gave me a sum of money, less than "hefty" but still "large", and didn't sign anything or talk to the bank or solicitor. The bloke on the phone from the bank asked where our deposit was coming from, I said savings. As an afterthought I added that my parents had given me some of it. He asked if I had to pay them back, I said no it's a gift. That was the end of it. This was in summer 2010.

leereni

Thanks again for the additional comments.

I didn't think everyone would need to prove or sign anything which would create problems.

kingstreet

You have to know and be able to react to whatever you might be asked to produce. I've told you of an example Halifax case where the applicant was asked to produce gifted deposit letters from the donor, then also required to produce copies of the donor's bank statements to evidence the money being there.

You may be asked for nothing. You may be asked for everything. We can't tell you which.