Gifted deposit & solicitor

TLM_77

Hi all,

I have been given some inheritance early and want to use some of it for a deposit on a house.

However, we have had crippling debts including a secured loan.
In order to be even considered for moving house, we had to pay all our debt off.

I want desperately to hide my shame and protect her from what will be a really awkward conversation.

What I am now faced with is the solicitor wanting to know where the deposit is coming from - so I have explained some as gift, £25k from equity.
I didn't think it would be classed as a gifted deposit as I'm worried I'd have to disclose to mum how much i'm holding back.

kingstreet

Your solicitor is acting for the lender as well as for you. It has to adhere to the lender's requirements including verification of the source of deposit.

It has to report any "non-standard" issues to the lender too.

TrickyDicky101

If your solicitor is acting for the lender (very likely if (s)he is on the lender's panel) then it is in this capacity that he is requesting confirmation of deposit. Hence, you can tell the solicitor to go forth but don't expect to be offered a mortgage as a result.

TLM_77

kingstreet wrote: »

Your solicitor is acting for the lender as well as for you. It has to adhere to the lender's requirements including verification of the source of deposit.

It has to report any "non-standard" issues to the lender too.

Kind of assumed this...
But explaining the situation to them seemed to fall on deaf ears.

I think the answer for me will be that I have to be honest and open with mum...and after a near 25 year absence, go back on the naughty step.

TLM_77

TrickyDicky101 wrote: »

If your solicitor is acting for the lender (very likely if (s)he is on the lender's panel) then it is in this capacity that he is requesting confirmation of deposit. Hence, you can tell the solicitor to go forth but don't expect to be offered a mortgage as a result.

Hi, I know for a fact that they are NOT on the lenders panel.

Would very much like to be able to just deal with the lenders underwriters direct (via broker) as they are apparently far more sympathetic / understanding etc.

ACG

Type out a letter.

It should be addressed to the lender and say something along the lines of:

Re: Purchase of (Insert address), by (Insert name(s)).

To whom it may concern,
I/We confirm we are gifting our son/daughter, (Insert applicants name) £xx,xxx for the purchase of the above property.
I/We also confirm that this gift is non refundable, non interest baring and I/we will have no rights in the property whatsoever.
Regards,




Signed:

---

Remove the XXX's and just put .........

Hope that your mum just signs it, you can then fill out the monetary amount yourself.

Have you already applied?
Has the lender not questioned where £90k has come from?

You can get the letter yourself, where there is a gifted deposit, I take the above letter with me to the clients. More often than not it will go through. There is the odd lender who will want their own form completing in which case you will have no option but to disclose it.

TLM_77

ACG wrote: »

Hope that your mum just signs it, you can then fill out the monetary amount yourself.

Have you already applied?
Has the lender not questioned where £90k has come from?

You can get the letter yourself, where there is a gifted deposit, I take the above letter with me to the clients. More often than not it will go through. There is the odd lender who will want their own form completing in which case you will have no option but to disclose it.

My mum will sign it no issue there at all.
My mortgage application has been accepted, valuation booked next Wed, providing that is ok, mortgage offer will follow - they have not asked us for any supporting information regarding the deposit.

beecher2

Just tell your mum the truth - in her position I'd want to know. Think you want to protect yourself from an awkward conversation rather than her - you should really have told her when the idea was first mentioned.

TLM_77

beecher2 wrote: »

Just tell your mum the truth - in her position I'd want to know. Think you want to protect yourself from an awkward conversation rather than her - you should really have told her when the idea was first mentioned.

You're right and I know it.

kingstreet

TLM_77 wrote: »

Hi, I know for a fact that they are NOT on the lenders panel

In which case, the lender will appoint a panel solicitor to act for them at your expense and you will have to provide the required documentation to them.

kingstreet

TLM_77 wrote: »

the letter will have to say £50k deposit, not £95k - £45k less is a big gulf to explain!

"Mum, we reduced our mortgage by £45k, so we need to borrow less next time. Only £50k is being used as deposit now."

Best I can do, I'm afraid.