When is a deposit not a deposit?

Tygermoth

Hi all,

The OHs lovely grandad died. The MIL inherited a small sum and though there was not a provision in the will all the parents have gifted all the grand children a sum too (which I think is so lovely of them) and very much in line with his family outlook

She has used this, and last years gift allowance to make the gift so all above board.

So, to my question. We want to use this money to put towards our deposit - we look to buy this time next year.

This is not a gifted deposit... This is a gift which we want to add to our savings.

Will a bank get the distinction? Or are we going to be sucked into a drama?

betmunch

What drama are you expecting?

The lender will ask for a number of months bank statements, if the transfer to you shows on those bank statements then the lender will consider it a gift, if its given to you before the earliest bank statement requested its going to be considered savings

Tygermoth

Drama in the MIL having to sign paperwork to confirm its a gift and not a loan.

Or having to show bank statements or the will to prove where she got the money.. Even worse have to provide death cert/estate details. Or that she has to have a bankruptcy/credit check (so I heard)

No good deed goes unpunished but we just couldn't inflict that on her and turn a wonderful gesture into a administrative drama.

Poor woman had enough of that dealing with the estate!

Ps for clarity I should mention that the gift totally eclipses our savings 3to1 so I can appreciate the bank may want so insight to this sudden influx of funds even a year after the fact. Though we have a year to add our further savings to it.

Thrugelmir

Sounds as if the drama is in your head. Simply obtain the documentary evidence that this is an inheritance. Then there'll be no fuss made.

People who make drama's out of everyday events are normally viewed as covering up.

betmunch

If after a year the lender and the solicitor consider it savings then its savings, if they consider it a gift then you'll need to get the relevant paperwork.

Avoid the paperwork by checking with the solicitors and lender what they want for proof of savings before you apply

Tygermoth

There is no attempt to 'cover up'

A lovely lady has given us some money. WE have chosen to use that money to help us get onto the property ladder.

I do not want our desire to own our own home upset or inconvenience someone who has just done us a good deed.

That is all.

(the inheritance was to the mother, not the son - she and her brother and sisters chose to pass money on to the grandchildren as such there is official documents of the dispersal of the estate but only to his children. Anyway i refuse to upset anyone by asking for wills and death certs for money that has been genrosly given - feels wrong- i would rather not put the money in the pot and wait a few more years rather than buy next year)

davidmcn

Tygermoth wrote: »

i refuse to upset anyone by asking for wills and death certs

You don't have to, because they're publicly registered documents - you can get copies of them yourself.

What documents you will need are up to the policies of the individual lender and solicitor you deal with - nobody can guess those with any great certainty at this stage. But I wouldn't be looking for further evidence about money which has been in your account for over a year.

getmore4less

Your buying in 12month time.

Just spend some of it on your normal things and keep more from income over the next 12month.

Or just stick in the savings account with the rest of your deposit nad savings over the next 12 months and forget about any drama.

Thrugelmir

Tygermoth wrote: »

There is no attempt to 'cover up'

A lovely lady has given us some money. WE have chosen to use that money to help us get onto the property ladder.

I do not want our desire to own our own home upset or inconvenience someone who has just done us a good deed.

That is all.

You need to understand the matter from a lenders perspective. The basic fact is that people lie. Therefore nothing cannot be taken at face value.