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Gifted Deposit- Buyer has asked me (the seller) to do this

madmanroo
Posts: 2 Newbie
I recently put my flat up for sale and advertised it 13,000 below home report valuation. I'm selling the flat with a sitting tenant.
My question is;
I was contacted by a prospective buyer who is a landlord looking to add to his current properties.
The thing he asked is if I would gift a deposit to him.
I hadn't heard of this before and wondered how it would work and do banks accept this?
So basically I would sell to him full price but then give him back the difference!
Would this work?
Any advise would be helpful!
Thanks
My question is;
I was contacted by a prospective buyer who is a landlord looking to add to his current properties.
The thing he asked is if I would gift a deposit to him.
I hadn't heard of this before and wondered how it would work and do banks accept this?
So basically I would sell to him full price but then give him back the difference!
Would this work?
Any advise would be helpful!
Thanks
0
Comments
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I believe, that with the tighter lending criteria around these days, this won't be permissible.
It's tough enough getting a deposit from family members, who aren't your parents, accepted.
Sure someone more knowledgeable will be about soonI have a simple philosophy:
Fill what's empty. Empty what's full. Scratch where it itches.
- Alice Roosevelt Longworth0 -
Gifted deposit from a seller who isn't related to you = no lender will accept.
(And are you sure you mean a "sitting tenant", rather than just a tenant? "Sitting tenant" has quite a specific meaning, and depending on the tenant's health might devalue your property significantly).0 -
......
I was contacted by a prospective buyer who is a landlord looking to add to his current properties.
The thing he asked is if I would gift a deposit to him.
...
He's on the fiddle, one way or another. I would expect he will say/tell lender he's buying for £xxxk and will lie about the gifted deposit which will disappear into his back pocket.
When I find I'm dealing with someone I can't/won't trust I stop dealing with them.. end of..0 -
Gifted deposits are meant for people who are struggling to save up and family members can chip in and help.
Theyre not so landlords can get around not having a big enough deposit.
Dont waste your time, lenders wont accept it anyway unless he has a dodgy solicitor on side - not worth the aggro, just hold out for someone who has the deposit.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks for all your input. I realise that gifted deposits from non family members are basically not accepted.
But since I am the seller then would that not make it a vendor gifted deposit, I got this advise from 'capital fortune finance' ;
Vendor Gifted Deposit Mortgages- are often sought by purchasers who require assistance with their mortgage deposit when purchasing a new property.
A number of lenders will accept a vendors gift which can then be used towards the deposit for the mortgage. A mortgage with a vendors gift or vendors deposit is given by the vendor or sometimes builder as a discount to the true market property price.
"Purchasing a property with vendors gift finance is an important purchasing decision and there are a number of mortgages with a vendors gift available. A vendors gift purchase can be undertaken using a variety of mortgages and some mortgage lenders have developed specific vendors gift products and finance to assist with the purchasing process"0 -
Madmanroo If you want to sell to them using this gift deposit and be complicit in fraud then on your head be it. The posters here have warned you against it and I would advise you to find another buyer.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
0 -
The last lender to pull out of the vendor gifted deposit market for residential products was Halifax in July 2011. I don't know of one operating in the BTL market.
I suspect this won't be an "official" VGD case. The purchase will be processed at the higher price and you'll be expected to give the purchaser cash on completion. This is a way of circumventing the higher BTL deposit requirement.
I wouldn't be surprised if this is really a residential buyer who has neither the income, nor the deposit, to get the mortgage he needs and is trying all kind of ways to bend the system to get what he wants.
Avoid.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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