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Mortgage Deposit

A family member has offered me a new build small house. I don't have a deposit but it has been suggested that the equity is gifted on the new build to enable me to buy. Is this legal?

Comments

  • da_rule
    da_rule Posts: 3,618 Forumite
    Sixth Anniversary 1,000 Posts
    Yes this is legal.

    They would need to gift you the equity (10% of the value for example) then you would need a mortgage for the remaining amount.

    They would need to sign a declaration saying that it is a gift (not a loan) and that they will have no interest in the property.
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