Cash Purchase help

luvin_the_money

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

Guest101

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

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

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

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

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

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

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

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

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

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......