Using inheritance as mortgage deposit - santander don't understand the deed, arrrgggh

lizziesmum

I'm trying to port my existing santander mortgage to a new property - early repayment charges are too high to give me any option. I'm not asking to borrow any more as the balance will be made up from inheritance. The issue is that santander don't seem to understand the deed of variation to my grandmothers will that proves I'm entitled to the money.

I'm a trustee and also named as a beneficiary and the deed says that ' the trustees (me, my mum and stepdad) may pay or apply any trust property for the advancement or benefit of any beneficiary'. But santander wont accept that as proof and are now asking for proof that I'm my gran's descendent etc. This is irrelevant as I'm named on the deed and, although I can prove it, all proof is at my mums house and she's on holiday!

The case is bouncing backwards and forwards from our mortgage advisor to underwriting and back again simply, it seems, because no one has the legal knowledge to understand the terms of the trust.

What's really frustrating is that the house we're buying is worth 420k, we're using 45k from the trust and asking to port 175k. The means that, if we defaulted on the mortgage and had to pay back the whole 45k to the trust, sntander could still recover our debt twice over. It makes no sense.

Anyone have any advice, for example could my conveyancing solicitor help out or is there any other way that I could speed things up. I'm worried I'll lose the house if santander don't get their acts together!

Thanks

DandelionPatrol

It really needs your solicitor - who should be acting on behalf of Santander - to explain this to them. Is your solicitor aware and does he understand the deal?

What proof is at your mother's house? If it is of your grand parentage, then personally, I would not be bothering - it is the trust which matters. I think your mortgage advisor should be explaining in terms of this is where the money is coming from and is this OK subject to your solicitor verifying that the arrangement is compliant with Santander's rules.

Just one little thought though - is the 45k actually a loan to be secured on the property? Santander will justifiably not like this.

If after this Santander are going to persist in being thick, you need a new lender.

Thrugelmir

lizziesmum wrote: »

The issue is that santander don't seem to understand the deed of variation to my grandmothers will that proves I'm entitled to the money.

When is the money going to be released? At the moment it's a maybe not a certainty.

DandelionPatrol

Thrugelmir wrote: »

When is the money going to be released? At the moment it's a maybe not a certainty.

That should not be a showstopper for Santander, unless they are micromanaging. If the money is not forthcoming, the deal is off and the solicitor should head off this problem before exchange anyway.

Thrugelmir

DandelionPatrol wrote: »

That should not be a showstopper for Santander, unless they are micromanaging. If the money is not forthcoming, the deal is off and the solicitor should head off this problem before exchange anyway.

Just seemed the simplest solution. Unless of course the "inheritance" is not yet freely available in cash.

getmore4less

If you have to pay it back to the trust then it is just a loan and you need to declare it as a loan.

That DOV sets up a trust that may give you the money why have you not done one that gives you money absolutely?

lizziesmum

Hi all
Thanks for your replies. The trust is discretionary so that the money is available to whichever of the beneficiaries may need it as long as the trustees agree this - which they do. It's not a loan and won't be secured on the property.

I think santander are assuming it's a bare trust and that the other beneficiaries could have a claim on the property if I take more than my allocated amount (as its discretionary, there isn't one but they seem to have plucked one from thin air regardless!) I find it so frustrating that they are holding up my application because they don't understand the trust - surely they have a legal team that could explain it to them.