Father in law gifting us money for stamp duty & fees

Kell4life

Wondering if someone can offer some advice:

My husband, 2 children and I have have recently sold our house, we are now renting a house short term until we find another house to buy. We have the money from house sale in savings, and have cleared all our credit cards. We were originally looking to move 100 miles away from the area we live now (South East England) in order to get a bigger family house for our money. My husband recently discussed this with his father and he has kindly offered to gift us some money in order to help us stay closer to the family.

We have seen a new build development that we are really keen on and this would enable us to do Help to Buy and to put down a smaller deposit.

From the sale of our property we have enough to put down a 5% deposit and most of the stamp duty but we would be £2,000 short on stamp duty. My father in law has offered to gift us £10,000 which will cover the rest of the stamp duty, solicitors fees, removals and any optional extras on the property.

We haven't started the process of applying for a mortgage yet as we haven't actually reserved a plot yet, but we're just starting to think about the mortgage application. Will we need to declare the £10,000 being gifted to us even though we have enough money in savings to cover the deposit? Will the mortgage company want to see if we have enough money for stamp duty and other moving fees? Would my father in law need to sign anything in order to gift us the money?

Many thanks in advance

betmunch

The lender will only ask you where the deposit money is coming from, if you can prove you have that in your savings they will not care about your father paying the stamp duty or solicitors costs

libf

The mortgage company are only interested in the deposit. The solicitor will be interested in the source of the rest, but as long as your father is willing to confirm to them that it's a gift (and possibly prove where the money came from) then it won't be a problem.

Kell4life

Thank you, great help

kingstreet

FWIW the solicitor acting for you and your lender may wish to know the source of all your funds and may be required to report to the lender any contribution from third parties.