MIL gift from house sale as deposit

danielanthony

Hi all,

My MIL wants us to move to a new property which includes a granny annexe. We would both need to sell our houses and would have a deposit of at least £200,000 & £150,000 from our respective sales.

She is willing to give us the £200,000 as a gift and know this leaves her without a claim to her new accommodation but is still intent on proceeding. My question is, is this feasible from a lenders perspective? She does work but is close to retirement so doubt she could go on the mortgage with myself and my wife.

Thanks

kaya

we just had a similar thing whereby the MIL (god love her) gave us nearly £200k towards our new home, we had to take her to the solicitors where she signed a document stating that she wouldn't have any claim over the property in future for the lenders , that was all that was required the only difference being she wasn't going to move in with us, can't see why that would be unsurpassable though

kingstreet

Some lenders will have a real issue with this.

Santander for example will not accept someone residing in the property who has contributed to the deposit but is not named on the ownership nor mortgage.

Use a broker to ensure smooth passage of such a case, especially where there is an annexe involved.

Thrugelmir

danielanthony wrote: »

She is willing to give us the £200,000 as a gift and know this leaves her without a claim to her new accommodation but is still intent on proceeding.

Gives her a future financial interest in the new property part of which will be her home. That's where the potential issue for lenders lies.

AnotherJoe

Read this to the end, it looks as if HSBC will be a possibility
https://forums.moneysavingexpert.com/discussion/5449642

danielanthony

Thanks for that, I've also asked how another poster got on with Halifax