Gifted deposit

Mr_Potato

Anyone know, if deposit is being gifted by parents and in-laws, does that money need to be available funds to get mortgage offer normally?
My part of the deposit is being gifted from father and is dependent on sale of land - has sale agreed and awaiting funds in January. Inlaws are gifting money from the sale of a house which will be completed on the day we would complete on our purchase (if we can). Is that likely to be accepted or would we need the funds in place before the mortgage offer?

libf

Funds of a sale completing the same day that your sale is completing will make things very complicated.

Depends on the lender, but they may request to see proof of funds, and even if they don't then the solicitor will definitely want to see proof of funds.

Ask your solicitor if what you're proposing is okay, but I doubt it.

Contemptuous

Your solicitor needs the deposit in order to exchange contracts.

Lungboy

Contemptuous wrote: »

Your solicitor needs the deposit in order to exchange contracts.

I think he means the other deposit, the non-mortgage portion of the purchase, rather than the 10% required for exchange.

Mr_Potato

Yep sorry should have made it clearer. We will have funds available to exchange (10%+) but the query is the non-mortgage money i.e. mortgage is 180k, we are putting in 350k to make 530k. Not all of the 380k will be available until a property is sold and land is sold. Hope that makes a bit more sense?

libf

Mr_Potato wrote: »

Yep sorry should have made it clearer. We will have funds available to exchange (10%+) but the query is the non-mortgage money i.e. mortgage is 180k, we are putting in 350k to make 530k. Not all of the 380k will be available until a property is sold and land is sold. Hope that makes a bit more sense?

You need to speak to your solicitor as they will want to verify the funds for money laundry purposes.

Thrugelmir

Mr_Potato wrote: »

Yep sorry should have made it clearer. We will have funds available to exchange (10%+) but the query is the non-mortgage money i.e. mortgage is 180k, we are putting in 350k to make 530k. Not all of the 380k will be available until a property is sold and land is sold. Hope that makes a bit more sense?

Then you shouldn't be exchanging contracts until the funds are available. There's always an inherent risk that something will pen happen with one of the transactions.

chappers

yep wouldn't have thought your solicitor would be happy with this arrangement, too much chance of things going wrong.