Changing who's gifted me a deposit

HarrietMD

Hi,

my father has offered to gift me a deposit of £100K and I have supplied gifted letter to my mortgage adviser who has filed my application. I'm now concerned that if anything should happen to my father I will be liable for inheritance tax but also don't want my father to hand over such a large sum of his savings.

So I was hoping to change how I made up the deposit- £25K from my savings, £25K from my father and £50K from my partner who would be willing to say he has gifted me the money- but I'm concerned the mortgage lender may pull my mortgage offer if my partner is gifting me money (he is not on the mortgage application and I have applied on my own)

Having come this far I don't want to jeopardise my chance of finally getting a mortgage.

Really appreciate some advice

Thanks

Harriet

ACG

Not many lenders will allow a gift from non family memebers or from people who plan to reside in the property but not be named on it.

Where is the deposit coming from? That is what you must declare on your application. On a side note, I believe you can give a one off large gift to family and it being exempt from IHT - I could be wrong however, your father should be getting IHT planning advice, it might also be worth you being there as it could prevent a whole lot of problems down the line.

AllyMac

I'm confused - do you mean you're wondering about only taking £25K from your father and using your own £25K and £50K from your boy/girlfriend?

Or do you mean do we advise you to still take £100K from your father and lie about where it came from?

AllyMac

I think it's the former as you're also worried about your dad gifting you so much.
If he can afford to do so - why not look into an insurance policy to pay out to cover the IHT if he dies? I think it's only 7 years before IHT is no longer due on the gift, and it's a gradual scale - is he particularly old?

If you have £25K of your own savings, then you could keep that aside for potential IHT?

AllyMac

Another thought - does it have to be a gift?
Could you buy together?
When he dies his share would be part of his estate but he might be under the IHT limit? (though possibly not if he has a spare £100K lying around to give you!)

kingstreet

Please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please, please make sure you tell us the name of the lender concerned if you are going to raise an issue where the outcome and any suggested future action is absolutely, completely and utterly dependent on the lender concerned.

Thank you kindly.

I intend to use this in other and future threads. Expect to see it again.

HarrietMD

Thanks everyone- my partner actually lives elsewhere and will not be living with me but plans on gifting me the £50K but not sure the mortgage lender will accept this?

Thanks

Max

AllyMac

I don't know about you HarrietMD but I kinda got the impression from kingstreet that it depends on the lender!

anselld

HarrietMD wrote: »

I'm now concerned that if anything should happen to my father I will be liable for inheritance tax

You will not be liable for inheritance tax.

kingstreet

HarrietMD wrote: »

£50K from my partner who would be willing to say he has gifted me the money- but I'm concerned the mortgage lender may pull my mortgage offer if my partner is gifting me money (he is not on the mortgage application and I have applied on my own)

It may be an issue if he will reside in the property, but as intimated earlier knowing the lender concerned is vital to this.

HarrietMD

The lender is Halifax