Gift deposit with a twist

SanRoxi

Hi, I'm completely new to this forum and I have a question which might or might not already have been posted. Here goes.

My father inlaw wants to sell his house (around 140-130k) and use (gift) me and my wife the money to put down as a deposit for our house so we will only have a small mortgage of around 50-60k. And to add to this he will live under the same roof as us but me and my wife would be paying the mortgage.

Am I correct in thinking this is all fine with it being well below the 325k IHT threshold ?

Also would he need to transfer the money he gets for his house to a joined bank account (in me and my wife's name) or would he be able to put the money directly down as a deposit from himself ?

I'm sorry if I'm coming across as abit of a noob, i have no experience as we are first time buyers plus I'm foreign so there is a slight language barrier 😁😁

Thanks in advance for any advice

Thrugelmir

You'll need to declare your FIL's intention to reside in the property. The "gift" actually means that he has a financial interest in the property. You need to ensure that this is permissable from the mortgage lenders point of view. Alternatively add him to the mortgage.

csgohan4

You would need a broker to help you find a lender, but is this really a gift? as he wants to stay with you