Mortgage Deposit

Bexx1234

Good Morning,

We are currently renting a family members property, we want to buy this property. Someone has advised us that if the family member was to give us a discount on price this would count as a gifted deposit, is this correct?

They said that he would need to sign a document at the solicitors to say that he does not expect any moneys back as this is a gifted deposit.

Please can someone confirm if this is correct?

Thank you!

kingstreet

Yes to both.

An independent broker would be the best place to get advice on this to ensure it is done properly.

Your relative needs to note capital gains tax is paid on the market value, not the discounted price you pay. Your stamp duty is however based on the 'consideration' the actual amount paid.

Bexx1234

Great thank you so much for your reply! Really helpful advice.