Gifted money towards mortgage

synapse321

Hi

When me and my wife found a property we went to the bank to see what mortgage we could get.

My mum wrote a signed letter that she would give gift us £80000 unconditionally no strings attached and my brother said he would gift £6500 in another letter. Both these letters were handed to the bank. We got an agreement with the bank for a mortgage around £53k and me and my wife would add another £80k as a deposit.

Further down the line my mum said she would only gift £80k that in the event of our divorce she would get her money back. My mum wants to draw up a letter with another solicitor to that effect ie adding conditions on the gift and asking us to sign this document, after which she would give us the gift.

My question is how would the bank who is giving us the mortgage view this? and also is a solicitor duty bound to inform the bank about these new conditions my mum is putting on us when we take out the mortgage?

Thanks in advance

Mojisola

synapse321 wrote: »

My mum wrote a signed letter that she would give gift us £80000 unconditionally no strings attached

Further down the line my mum said she would only gift £80k that in the event of our divorce she would get her money back.

In that case, it isn't a gift.

Senior_Paper_Monitor

Some - but only some - lenders will permit an arrangement of this sort.

synapse321

Hi again

Am I right in saying that at the time of the application for the mortgage we gave the bank 2 letters signed by my brother and mum about the gifted amounts then if we do not tell the bank about my mum's decision to add conditions to the gift then we are effectively getting a mortgage dishonestly? In that case is the solicitor duty bound to inform the bank about the strings attached.

The reason I am asking these questions is if my mum/brother have ulterior motives further down the line then I don't want to do anything illegal that could affect mine and my wife's future prospect. I would like to stay within the bounds of the law.

Thanks

kingstreet

The solicitor is usually acting for lender and you, so anything you ask the solicitor to do, will be made known to the lender.

synapse321

Thanks for the responses.

The fact my brother and mum are saying to me to get another solicitor to write up such document about the gift not being a gift. This rings alarm bells for me because I thought you should only get one solicitor involved in the buying of the house and do everything through him. Am I right in saying that if I get a second solicitor involved he will turn round and say sorry someone is representing you already therefore am unable to help?

Thanks once again, really appreciated.

synapse321

It seems I have learned a lesson about trusting those close to you.

I think the bank will take away the offer once they realized that it was never going to be a gift.

I will have lost about a £1000 in fees etc. Put it down to experience I assume...

Thrugelmir

What is your Mothers aim. Does she not want you to have the money either in the event that divorce your wife? Does she want the property sold if you divorce?

synapse321

Hi

That is a good question.

My mum and brother wanted me and my wife to attend the solicitors without any notice or word back end of last week.

When we got there I told the solicitors that I don't know why I have been summoned there. After the solicitor realized there was a conflict of interest he told me and wife to leave so he could talk to only my mum and brother.

The biggest problem is my mum and brother are going behind our backs to whichever solicitor and refusing to discuss the outcome with us. It is affecting both me and my wife's mental health and I am trying to protect my son too.

My brother mentioned a declaration of trust but that seems that he and my mum would also be put on the title deeds if that was the case from my limited legal knowledge. They then would claim a share from the property being sold.

I love my wife and mistrust my family blood relations. My wife has had to endure a lot of stress from me and my family's nontransparent ways. My mum always falsely stated that the family home would always be inherited by myself as she had already gifted £150k each to both my brothers. But now she is not being fair.

Regards

Thrugelmir

synapse321 wrote: »

When we got there I told the solicitors that I don't know why I have been summoned there. After the solicitor realized there was a conflict of interest he told me and wife to leave so he could talk to only my mum and brother.

Then it's worth bearing in mind that the solicitor isn't in a position to advise you. If under duress you sign an agreement without the opportunity of seeking legal advice yourselves. The agreement is highly likely to be considered void in a Court of Law.

Personally I would suggest you discreetly seek professional advice yourselves. As it may be the case that any secondary agreement that the lender is unaware of is legally enforceable. The original unconditional gift letter is the piece of paper that really matters.

Just a thought. As you too can play games.

Mojisola

synapse321 wrote: »

The biggest problem is my mum and brother are going behind our backs to whichever solicitor and refusing to discuss the outcome with us. It is affecting both me and my wife's mental health and I am trying to protect my son too.

I love my wife and mistrust my family blood relations. My wife has had to endure a lot of stress from me and my family's nontransparent ways.

Find a way to get your own home without involving people you don't trust. Better to rent than have these people involved in your financial arrangements.