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Gifted Deposit Legal Worries!

My boyfriend has inherited an amount of money which he wants to use to buy a house. He can't get a mortgage but I can. He wants to gift it to me to get the mortgage but can I get something legal drawn up to state the equity is his so there are no grey areas??

Comments

  • Lunchbox
    Lunchbox Posts: 278 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    A mortgage lender will require him to sign a form stating its a gift and that he has no interest in the property. A lender won't allow someone who isn't a party on the mortgage to own part of the equity as this would make it difficult to repossess if you defaulted.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Sparkly13 wrote: »
    can I get something legal drawn up to state the equity is his so there are no grey areas??

    Then it's not a gift.
  • Thanks. So really there is nothing that can be done legally. It'll all be trust.
  • chanz4
    chanz4 Posts: 11,057 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Xmas Saver!
    it would also be fraud
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Sparkly13 wrote: »
    Thanks. So really there is nothing that can be done legally. It'll all be trust.

    The lender is unlikely to find the source of the deposit acceptable. Consult a broker as there may be options from a lender specialising in adverse credit cases. A large deposit will make a difference.

    What are the issues with your partners credit profile?
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    why can't you get a joint mortgage
  • ACG
    ACG Posts: 24,746 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    There is only 1 possibly 2 high street lenders who will allow a mortgage in 1 persons name and the deposit come from their partner who will be living in the property but not going on the mortgage.

    I would suggest speaking to a broker as your options will be limited.

    As far as the bit you are actually asking about goes, it would be a declaration of trust.
    I am a Mortgage Adviser
    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.
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