Family gift money for mortgage from abroad;

zacks38

Hi all,

thanks in advance for your help,
my situation is as follow, i live and work full time for 10 years in UK. Have never been in high salaries, but always lived on low or no rent (guest to my brother), no dependants, no cars, no expensive lifestyle, so i managed to save atound £40K (estimated). My parents living in Greece when the recession started there started sending me some money, through my brothers accounts and then to mine in total around £35K in a few transactions (maybe around 10).My brother used to send it in an joint account we had and when he got married in 2012, i took it in my accounts which is been mixed with my own personal savings. That money coming from abroad has been with me initially since 2010. Recently i applied for a £51.500 mortgage and i want to put as a deposit £51.500. I applied online through HSBC(my main bank) and had one option only where deposit came from, so i chose savings. Now the solicitors are asking source of funds and i do not know that whether this money coming from abroad counts as savings (it has been with me for 5 years periodically) or should i declare it as a gift and what implications or extra paperwork this would have. My dad is a retired postman and these were personal savings and has no interest in it or wanting it back. I can obtain my brothers bank statements if needed. Any suggestions on what should i declare as savings and do i have to declare the rest as gift, or any other relevant information;

Kind Regards,

George.

silvercar

Ask the solicitor his opinion.

There must be a time when gifts become your own savings....

zacks38

Thanks silvercar,

that's what i am intended to do, after i finish my mortgage application (sendind them what papers they asked), i was just wondering ie somebody receives a gift the legal amount of £3000 without implications to his inheritance tax and he saves it, after a few years does this amount count as a gift or saving;

Keep_pedalling

Lenders are really concerned if a gift is really a loan, and will probably require a signed statement from the giver that it is indeed a gift rather than a loan. Bearing in mind the time you have had that money and not frittered it away like many people would have done, I would class that as savings, and you have 5 years of statements to prove that if nessasary.

Mojisola

zacks38 wrote: »

i was just wondering ie somebody receives a gift the legal amount of £3000 without implications to his inheritance tax and he saves it, after a few years does this amount count as a gift or saving;

Money you receive as a gift doesn't have any impact on whether your estate would have to pay inheritance tax when you die.

Any tax that was payable would come from the person giving the money after they died.

zacks38

Thanks Keep pedalling,

The case is that i have this money over a period of time about 6 years and shows clearly in my statements that there is no repayments been made. Clearly my parents live in another country, so there is no interest in the property whatsoever. Will see what the solicitor will say about it when i get in touch.

Regards,

George.

zacks38

What i did mean Mojisola,

regardless the tax issues,
if an individual receives gift money and saves it instance 5 years, after that the money is classed as gift or savings;

Regards,

George

Mojisola

I would say savings but you may still be asked how you came about it - saving money from your earnings or was it a gift.