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Gifted deposit letter
Comments
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The reason you need a signed deposit gift letter is in case your mum or dad get declared bankrupt in the future. In such cases without this letter in place your parent's creditors could take a stake in your property. Which you obvioulsy wouldn't want happening.
My mum and dad have just signed one and this was how my sols explained it.0 -
Thank heaven for this board as i have just pointed out to our solicitors that my mum has given me my inheritance due from my dad's half of the house sale. We had declared this when we instructed them but seemed unaware when i called them this morning!!
Just printed out the letter for mum to sign. Now got to muck around getting certified ID from her. Nothing is straight forward in this game!!0 -
Half_Price_Sky wrote: »The reason you need a signed deposit gift letter is in case your mum or dad get declared bankrupt in the future. In such cases without this letter in place your parent's creditors could take a stake in your property. Which you obvioulsy wouldn't want happening.
My mum and dad have just signed one and this was how my sols explained it.
Letter stops the donor reclaiming the money. However doesn't stop the donors creditors from seeking the money under certain circumstances. Fine detail is contained in the Insolvency Acts.0 -
Agreed with witchy, the only reason you need to justify the amount is for the mortgage lender and the mortgage lender does not need to know where the money came from to pay solicitors fees etc.
My mum gifted us some money for our deposit and the letter she wrote was:
Dear [solicitors name],
Re: [address of house]
I confirm that I have given the sum of £xx to xyx and xxx in respect of the above property. I also confirm that this gift is non-refundable and non-interest bearing and I will not retain any interest in this property whatsoever.
xyx is my daughter.
Yours faithfully,
[signature]
[mothers name]
[date]
nice letter, but would not be sufficient for a number of lenders who request a gift letter is addressed to them.
Anyone who wants the correct format for a gift letter should pm me and I will forward a link.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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
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