To Gift or not to Gift - HELP!

Keppetz

So........long story as short as possible! Property on market for 100k; deposit available was 10k but as it has taken so long my deposit increased to 13k and finally 15k. Mortgage broker said he should be able to find me suitable lender. I have jumped through every hoop going (turning into a right gymnast!) and lender has now said deposit must be 20k. Daughter has agreed to gift 5k shortfall and has signed paperwork to this effect; she was intending to take out loan in order to do this and would not have any problems credit-wise with this. However, the lender has now asked for her bank statement to show available funds and she has explained the funds aren't yet available. They have said she can't take out a loan. My son has now suggested he gifts the money to me via his business and that my daughter could still take out the loan and give it to him instead. The lender has agreed his business can gift the funds and has requested two months bank statements; he is reluctant to disclose his business details (all legit and above board!) to the lender. In theory the gift would still come from my daughter. Here's my concern.........would this be legal and above board? I don't want to get either my son or daughter in any trouble (or myself!) and am concerned/worried/scared stiff as to whether this would be considered money laundering (we are not criminals) or classed as obtaining a mortgage fraudulently. Please can someone help me. My offer was accepted in June and I seem to have had one problem after another in obtaining a mortgage offer. I don't want to lose the opportunity of having my own house; this one is perfect and ticks all my boxes except enough deposit.
Thanks

davidmcn

Keppetz wrote: »

he is reluctant to disclose his business details (all legit and above board!) to the lender.

Why? They're only wanting to check that the funds are there. And he'll probably have to do the same for the solicitor when the time comes to actually hand over the money.

In theory the gift would still come from my daughter.

I thought you said it was coming from your son? He has the funds, and gifts it to you. If he separately is gifted the same amount of money by your daughter I don't think that's relevant to the lender.

csgohan4

I am sure you need more than 20 k right? Stamp duty, Legal fees, Surveyors, mortgage fees e.t.c You probably need 30 K to be safe to cover the fees.

Keppetz

Thanks for pointing that out Davidmcn. So, if my son says he is gifting it from his business (and can even make the transaction to show it has come from his account) it wouldn't matter if my daughter repaid him?

Keppetz

I have the necessary fees for solicitors, surveys etc., etc. and have already paid out 1k trying to obtain a mortgage. Big difference between 20k and 30k - why would it cost 10k in total for fees etc.?

LeoTLion

Keppetz wrote: »

I have the necessary fees for solicitors, surveys etc., etc. and have already paid out 1k trying to obtain a mortgage. Big difference between 20k and 30k - why would it cost 10k in total for fees etc.?

It wouldn't, ignore.

csgohan4

LeoTLion wrote: »

It wouldn't, ignore.

Lets see,


for you it would be 0 for stamp duty, for me it was about 4k in stamp duty.


Cost me 2000 for solicitors fees so far


400 for mortgage broker fees
2000 for mortgage product fees
600 for a full building survey
218 for valuation fees
600 for removals company
500 to activate break clause with current land lord


Leaving about 4k for any furniture and minor building work needed from survey or personal tastes as well as any other fees e.t.c (All adds up, packaging stuff, end of tenancy fees, check out e.t.c)


So in fact it will, in fact don't ignore the above poster if you don't believe nothing will go wrong and everything will be perfect and you don't want an emergency fund.

ViolaLass

csgohan4 wrote: »

Lets see,


for you it would be 0 for stamp duty, for me it was about 4k in stamp duty.


Cost me 2000 for solicitors fees so far


400 for mortgage broker fees I paid 0
2000 for mortgage product fees I paid 0
600 for a full building survey
218 for valuation fees mortgage company paid mine
600 for removals company cost me £200
500 to activate break clause with current land lord that's specific to you


Leaving about 4k for any furniture and minor building work needed from survey or personal tastes as well as any other fees e.t.c (All adds up, packaging stuff, end of tenancy fees, check out e.t.c)


So in fact it will, in fact don't ignore the above poster if you don't believe nothing will go wrong and everything will be perfect and you don't want an emergency fund.

£10k is way more than needed! Perfectly possible to spend less, particularly since, as you say, there will be no stamp duty.

LeoTLion

csgohan4 wrote: »

Lets see,


for you it would be 0 for stamp duty, for me it was about 4k in stamp duty.


Cost me 2000 for solicitors fees so far


400 for mortgage broker fees
2000 for mortgage product fees
600 for a full building survey
218 for valuation fees
600 for removals company
500 to activate break clause with current land lord


Leaving about 4k for any furniture and minor building work needed from survey or personal tastes as well as any other fees e.t.c (All adds up, packaging stuff, end of tenancy fees, check out e.t.c)


So in fact it will, in fact don't ignore the above poster if you don't believe nothing will go wrong and everything will be perfect and you don't want an emergency fund.

So because you've paid over the odds, everyone should?

You've included £4k for 'furniture and minor building work' - a moving cost? Hardly
£2k for Mortgage product fees, there are mortgages available with no product fee
£2k for solicitors, for a purchase only? Were they wearing a mask and striped jumper?
£400 for a broker, I'm sorry I didn't realise using a broker was compulsory, oh hang on, it isn't
£500 to activate break clause, did the OP state they were currently renting and within the fixed term?
Building survey optional and even if taken, can be had for less than £600

csgohan4

Every purchase is different, but always prepare for the unexpected.


Also somethings you don't skimp on like Building survey. Sure get a cheap one, but are they rated? are they qualified and have indemnity insurance e.t.c.



Sure you don't have to use a broker, personal choice, there are free ones too, but good luck. If your self employed good luck going it alone.

Solicitor fees were initially 890 but increased due to issues found on the deeds e.t.c.



What if survey found damp or the mortgage had a retention fee due to structural issues or Japanese Knotweed e.t.c. Poop happens, always prepare. you need some money to fix things.

It's safer to have some stored away and to have some savings left. For e.g should your car breakdown tomorrow and you used up all your money to buy a house, your pretty much stuffed. Sure get a 300 quid banger and wing it, might even get a good deal from the bangeromics MSE thread, but I would rather not risk it.


It's best to have your own destiny in your own hands than hope for the best.
Not too recently a poster on here posted about using a credit card for solicitor fees and other fees, that shows poor planning and not taking emergencies into account.

LeoTLion

csgohan4 wrote: »

Every purchase is different, but always prepare for the unexpected.


Also somethings you don't skimp on like Building survey. Sure get a cheap one, but are they rated? do are they on they qualified and have indemnity insurance e.t.c.



Sure you don't have to use a broker, personal choice, there are free ones too, but good luck. If your self employed good luck going it alone.

Solicitor fees were initially 890 but increased due to issues found on the deeds e.t.c.



What if survey found damp or the mortgage had a retention fee due to structural issues or Japanese Knotweed e.t.c. Poop happens, always prepare. you need some money to fix things.

It's safer to have some stored away and to have some savings left. For e.g should your car breakdown tomorrow and you used up all your money to buy a house, your pretty much stuffed. Sure get a 300 quid banger and wing it, might even get a good deal from the bangeromics MSE thread, but I would rather not risk it.


It's best to have your own destiny in your own hands than hope for the best.
Not too recently a poster on here posted about using a credit card for solicitor fees and other fees, that shows poor planning and not taking emergencies into account.

So in the space of 3 posts you've gone from advising the OP they need £10k to cover 'fees' on a £100k purchase, based on your on experience, to acknowledging that not all purchases are the same. That's quite some turnaround.

I wasn't arguing against the maxim enough = good, more = better, but what you stated was, quite simply, wrong and wrong advice is worse than no advice.