Nationwide blocking gifted deposits?

davidmcn

Mickey666 said:

davidmcn said:

And if there were sufficient equity in the first place, you'd expect the borrowers to have managed to sell the property themselves.

Would the defaulting borrowers have that option though?  How long would the lender give them?

Say the mortgage was £80k and the house was worth £100k, but the market was slow and it might take some time to find a buyer at £100k.  How long would the lenders allow before their patience wore thin, they repossessed the house and marketed it for £85k for a quick sale?  After all, will they really care if the borrowers lose their equity as long as they recover their loan?

Depends on the circumstances and whether the lender thinks they could do any better a job of selling the property. Lenders always need to be prepared to demonstrate that they took reasonable steps to achieve the best price (hence the practice of advertising that they've got an offer for £x and if you want to beat it, do so before y) - but that doesn't mean keeping it on the market for ages in the hope of an unlikely offer. Courts might afford borrowers more time though if they appear to be doing their best to sell the property.

davidmcn

Mickey666 said:

davidmcn said:

Mickey666 said:

Incidentally, I believe parents can gift their children up to £3k each year with no tax implications but what about the benefit-in-kind of living rent-free (and maybe completely free of ALL living costs)?  This effectively amounts to a 'gift' and would more than likely exceed the £3k allowance.  Does the taxman ever investigate such things or is there an exemption for family members living in the same home?

Payments towards living costs don't qualify as lifetime gifts and neither do "normal gifts out of income", it's really just chunkier one-off payments which are going to be counted.

Besides, I think most parents hope that their offspring will be leaving home long before inheritance tax planning becomes that important!

So if the parents had a big enough house and could afford to support their child(ren) indefinitely, then there's absolutely no tax implications for the child(ren) to effectively live off their parents income all their lives?

Nope.

corcutt

davidmcn said:

leodis23 said:

I had a mild panic when I saw it, as my broker never mentioned it, but my dad loaned me 20.5% towards my deposit.

Loans wouldn't be accepted at all. It needs to be a no-strings-attached gift.

Yeah any kind of additional loan with interest payment will hurt your application from an affordability standpoint.