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Buying home from parents with gift as deposit - help!
mhiggins90
Posts: 3 Newbie
I am purchasing my deceased grandfather's flat from my father and my aunt for £200,000. £25,000 from the sale of the flat was intended to come to me to me as a gift from my father. I am planning on using this £25k as part of my deposit for the flat.
This means that I can only transfer £175,000 (the mortgage money and the other part of my deposit) as I don't yet have the remaining £25,000. My solicitor is giving the impression this is causing great difficulties and may affect the purchase price of the flat. As a non-qualified lawyer I don't see why this can't be written into the contract to show that the sale price is still £200,00 taking into consideration my father's gift.
Am I wrong in thinking this is fairly simple and is my solicitor right in making it out to be a complex transaction?
Thank you!
This means that I can only transfer £175,000 (the mortgage money and the other part of my deposit) as I don't yet have the remaining £25,000. My solicitor is giving the impression this is causing great difficulties and may affect the purchase price of the flat. As a non-qualified lawyer I don't see why this can't be written into the contract to show that the sale price is still £200,00 taking into consideration my father's gift.
Am I wrong in thinking this is fairly simple and is my solicitor right in making it out to be a complex transaction?
Thank you!
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Comments
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I take it your mortgage company is aware of this setup0
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Yes, this has all been explained to my mortgage company. Thanks0
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mhiggins90 wrote: »As a non-qualified lawyer.......
What's one of them?...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
Sorry, as someone with no legal knowledge!
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As another non-qualified lawyer I have to say it does sound very complex.
The mortgage company will need to be certain it's a gift and not a loan, for a start.
Is the property valued at the price you say it is? Has the mortgage company agreed that value?Retired in 2015.
Moved to Ireland September 20170 -
Your father and aunt inherited the flat from their father and own half each?
They have decided to sell? The flat was valued for sale at £200,000 and this valuation was agreed by your mortgage company?
Your aunt wants her £100,000 but Dad only wants £75000 as he is making you a gift of £25000.
You are borrowing a certain amount from the mortgage company (which has been formally advised of the gifted deposit) and putting up the rest yourself. http://harveybowes.wordpress.com/2012/11/10/gifted-deposits-a-real-solution-for-first-time-buyers/ s(ee "family gifted deposits)
The contract for sale formally records all the above facts?
I can't see the problem?0
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