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A loan to buy a house now has to be a gift?
grahamholder
Posts: 3 Newbie
in Loans
I loaned a friend some money to help him buy a new house. The conveyancing company want proof of ID, a bank statement showing the funds being taken and a letter stating that is a non-refundable and unconditional gift which it isn't. Are they within their rights to insist on this and is there any way I can get around this without lying?
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Yes, they are within their rights to ask you. If you lie your friend wont be able to buy the house, and you will aid him in committing mortgage fraud.......on the surface of it I would tell the truth and keep your money in your bank.2
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Your questions: yes they are right to insist on this, and no you cant without lying.
They are judging his mortgage ability based on his affordability. He didn't save his own deposit and he has to factor in paying back you alongside his mortgage repayments/householder expenses. He doesnt have a deposit he has a debt.1 -
Your friend has indicated this is a gifted deposit.
If that is not the case (for example you want the money back), then you need to be honest with the Solicitor for the reason stated by KatrinaWaves aboveLife isn't about the number of breaths we take, but the moments that take our breath away. Like choking....0 -
Anyone else get a personal message with the OP's reply? I am out.0
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Sorry Foxy, I am a forum newby and didn't realise I had gone off piste!1
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Yes its how it is, he either gives you the money back, you lie stating it is a gift and the 2 of you agree on x amount per month or you write the money off.
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If you do state its a gift then in effect that is exactly what it becomes. You would have no real chance of ever pursuing the debt if he decided not to pay.0
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If it's NOT a gift then it becomes a100% loan on the house..no lender is going to go with that!#2 Saving for Christmas 2024 - £1 a day challenge. £325 of £3660
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grahamholder said:I loaned a friend some money to help him buy a new house. The conveyancing company want proof of ID, a bank statement showing the funds being taken and a letter stating that is a non-refundable and unconditional gift which it isn't. Are they within their rights to insist on this and is there any way I can get around this without lying?
Don’t lie, you’ll be taking part in financial fraud if you do.2 -
JGB1955 said:If it's NOT a gift then it becomes a100% loan on the house..no lender is going to go with that!0
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