Gifted money used towards deposit

alice11

Hi,

I've been given some money from my parents a few months ago at christmas and I am now using some of this money towards the deposit. I am now required to provide a Gift Deposit letter because they could see that part of the deposit is money that was transfered to my account by my parents. I have 2 questions:

- does this actually qualify as gifted deposit money (as originally it wasn't gifted to me for this purpose specifically)?

- if so, I've looked at some examples of gift deposit letters and it seems very specific to people who received money specifically for their deposit, do you think I can just have the letter to say that the the money was given to me as a present and that this gift is given freely, no interest will be charged and no repayment is required?

Your help would be much appreciated!
Thanks
Alice

daivid

alice11 wrote: »

Hi,

and I am now using some of this money towards the deposit.

Implies to me that the gift was for quite a lot, so yes declaring it as a gift would be wise. If however it was for an amount easily lost in the monthly ins and outs of pay and typical spends I wouldn't worry about it

- if so, I've looked at some examples of gift deposit letters and it seems very specific to people who received money specifically for their deposit, do you think I can just have the letter to say that the the money was given to me as a present and that this gift is given freely, no interest will be charged and no repayment is required?

Exactly that + IIRC: that no hold or title will be held on the property purchased

If in doubt ask the mortgage provider or your solicitor (though I suspect they will err on the side of caution.

G_M

ruhe wrote: »

Do not ask the mortgage advisor or solicitor because if you ask them it will imply that you want to present the correct impression and "say the correct thing" which implies deceptive intention doesn't it?
Don't see why asking implies that at all!


Just state firmly, precisely and clearly that you've been gifted money of X amount by your mum for you to use in a non specific way which is the truth and that's it.

which does not resolve the question of a 'gifted deposit'.


The only legal concern that is relevant in your situation is the source of the funds so that the lawyer and the mortgage company can tick the box that is money laundering compliance.
No.
This is not about money laundering comliance - that is a separeta issue.
This is about gifted deposits!



... sorry to contradict the previous poster but this is my opinion and as with all opinions they sometimes differ

Indeed they do.

kingstreet

A 'gifted deposit', or a 'gift used for a deposit'?

If it was my client, I'd be doing the gift form/letter for the simple reason that that section of the deposit is not savings, equity etc.

It may be box ticking, but I tend to pick my battles with lenders where I have a hope of winning...

Tiglet2

Your solicitor will probably have a pro-forma letter for you to fill in. Regardless of whether this is technically a gifted deposit or not, the fact is you have some money gifted from your parents, so just fill in the letter, get your parents to sign it (they will have to provide their ID) and return to the solicitor. Job done.

davidmcn

ruhe wrote: »

The issue isn't about a gifted deposit because the poster has stated clearly and unequivocally that the gift was not specifically for a deposit therefore it's not a gifted deposit because it wasn't

If Alice the original poster is free to invite all her girl friends on an all expense holiday to Las Vegas for two weeks with the money that was gifted to her then this is clearly not a gifted deposit and I don't see there's any ambiguity nor is it open to interpretation because "not a gifted deposit" means it's not a gifted deposit

Now if the "precise and exact" nature of a question was "Alice, has any part of the deposit thereof composed of moneys that was gifted to you" the clear answer is yes

The two situations are different although not mutually exclusive

From the solicitor's point of view they're not different, because the question they're having to answer is "has any part of the deposit come from elsewhere than the borrower's own funds". So either would have to be reported to the lender. And the vast majority of lenders only accept gifts from a limited set of relatives and provided they have also signed a declaration that it's a gift (so in any event they'll find out what the donee has decided to spend their Christmas money on).

mije1983

This is making a mountain out of a molehill. Is there an issue in getting them to say it's a gift, regardless of where it has come from/was gifted for? Just keep it simple.

xylophone

Your parents gave you some money. It was entirely up to you how you used it.

Surely all you need is a signed and dated letter from your parents on the following lines:-

The undersigned (your parents) of (their address) hereby confirm that on (date) we jointly gifted the sum of £X to our daughter (your name) for her to use entirely at her discretion.

davidmcn

xylophone wrote: »

Surely all you need is a signed and dated letter from your parents on the following lines:-

The undersigned (your parents) of (their address) hereby confirm that on (date) we jointly gifted the sum of £X to our daughter (your name) for her to use entirely at her discretion.

What they need is a letter in the format required by the solicitor. The OP isn't going to get far arguing with them that they ought to accept something else.

LittleMax

As you can see there are many different answers as to what it needs to say. You could follow any of these examples and not satisfy your solicitor. Why not just ask your Solicitor what needs to be included, draft it out and ask your parents to sign it?

Thrugelmir

ruhe wrote: »

I wonder at what point a gifted amount of money is considered your own savings by most reasonable minded persons

Never. To accumulate savings they would need to come out of ones own income or earnings. The point at issue being the source. Which won't change.