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Cash Purchase help

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luvin_the_money
luvin_the_money Posts: 20 Forumite
in House buying, renting & selling
Hi all,

I Currently own a 50% share in my house. (I know but I was 21 and did not have any knowledge and thought it was a good idea).

I want to buy the other 50% without a mortgage.

The money is as follows

£33,500 - Joint account with my wife
£11k - from my Parents (will pay them back)
£5K from her Parents (will pay them back)
£8K from her sister (will pay her back

Solicitors are asking for proof of funds....

as £24k is coming from family members what is the easiest solution...

1. Put it down as a loan
2. Put it down as a gift?

what are the different procedures for each? and how do I evidence the money?

Thanks for your help
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Comments

  • Guest101
    Guest101 Posts: 15,764 Forumite
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    As long as there is no mortgage it is irrelevant.


    BUT I'm assuming the 50% you currently own is subject to a mortgage?
  • davidmcn
    davidmcn Posts: 23,596 Forumite
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    It doesn't matter whether they're a loan or a gift, they're wanting proof that it's their money. The solicitors should tell you what evidence they need, there aren't universally agreed rules - usually bank statements going back a certain length of time plus ID.
  • G_M
    G_M Posts: 51,977 Forumite
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    Guest101 wrote: »
    As long as there is no mortgage it is irrelevant.
    It becomes relevant if the relatives go round their brothels, stuff the cash into a suitcase, and deliver it to the solicitors......

    (sorry guest, just seems to be one of those days. I'll take some time off not as the sun is shining)
  • Guest101
    Guest101 Posts: 15,764 Forumite
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    G_M wrote: »
    It becomes relevant if the relatives go round their brothels, stuff the cash into a suitcase, and deliver it to the solicitors......

    (sorry guest, just seems to be one of those days. I'll take some time off not as the sun is shining)



    I meant whether they put it as a gift or a loan* - my bad I wasn't clear.


    (luck you, I've just got clouds and rain!)
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    luvin_the_money wrote: »

    what are the different procedures for each? and how do I evidence the money?

    Provide evidence of the source of funds. In this day and age every account has a statement.
  • bris
    bris Posts: 10,548 Forumite
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    Each party takes their bank statements and proof of ID such as a passport to the solicitors, he photo copies it all and then he's happy and will proceed.


    Because your not mortgaging the 50% then putting it down as a loan gives your relatives a bit security. If you put it down as a gift then they will have no rights to it back if the s**t hits the fan, which it usually does.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
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    luvin_the_money wrote: »
    £11k - from my Parents (will pay them back)
    £5K from her Parents (will pay them back)
    £8K from her sister (will pay her back

    1. Put it down as a loan
    2. Put it down as a gift?
    As a rough rule of thumb, people don't pay gifts back, but do pay loans back.
  • luvin_the_money
    luvin_the_money Posts: 20 Forumite
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    So what I am getting at the moment is that no one cares whether it is a gift or a loan as long as I can prove that all the money is legitimate.

    What if my parents do not want to show the source of the funds as it would mean I get to see the whole of their account?
  • davidmcn
    davidmcn Posts: 23,596 Forumite
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    luvin_the_money wrote: »
    What if my parents do not want to show the source of the funds
    Then your solicitor can't use their money.
  • G_M
    G_M Posts: 51,977 Forumite
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    The gift/loan issue is relevant if there's a mortgage, as the lender wants to be sure you can afford all the repayments.

    The source issue is to stop pimps and drug traffickers from laundering money via property. Pretty pointless considering all the off-shore companies owned by Russian !!!!! who buy £m properties in London......
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