Inheritance but lender wants confirmation it’s not a gifted deposit

GN2020

foxy-stoat said:

OP probably confused matters by stating it was part their inheritance when it wasn't.

Yeah, my fault. I just thought that because it came from the sale of dads house it would be classed as inheritance. I didn’t ever give it any thought to it being a gift.  

foxy-stoat

I am sure if Nationwide cannot pass this then another lender will.

GN2020

ACG said:

If they do not accept it as inheritance, is there a problem with changing it to a gift and getting a letter form your mum to say it is a gift? 

Personally, I would probably just ask them to re-label it as a gift and hope it does not affect the scoring of the application too much. Assuming your mum is not about to go in to a care home or doesnt look like she will be for some years, I cant see it making too much difference - but I suppose that is for you and your broker to discuss with the solicitor maybe. 

I dont mean to have a dig at the broker, but is he/she not discussing this with you?

He said today that Nationwide aren’t accepting gifted deposits over a certain amount at the moment. 

My mam is definitely a lot of years away from going into a care home, so that’s not an issue thankfully. 

Our broker has been great to be honest, it’s just with my mam having written the letter this afternoon, it just got me thinking in the last half hour or so (since he finished for the day) how else I could prove it was inheritance and not a gift but the more I’m reading these replies I can see now why it’s not classed as inheritance, in the popular sense of the word because it didn’t come straight to me from the solicitor, so I just wondered if there was anything extra I could do in the meantime other than the letter from my mam - just other opinions really 😊

GN2020

foxy-stoat said:

I am sure if Nationwide cannot pass this then another lender will.

Thankfully, he’s got a couple in mind just in case they don’t accept it 😊
I totally understand their stance, they’ve got to be careful in the current climate. I’m certainly not going to throw my toys out of the pram over it. 

There’s a lender for everyone I guess 😊

ACG

If you think about how inheritance works in practice, it is usually a legal process of transferring ownership from one person to another and paying any IHT if applicable. 

That has not taken place so I just cant see how it would be inheritance. 
If they will not accept the gift, I think you may need to look for plan B. No harm in trying to make it work, I have seen stranger things happen but there is also no harm having your back up plan ready to go. 

GN2020

ACG said:

If you think about how inheritance works in practice, it is usually a legal process of transferring ownership from one person to another and paying any IHT if applicable. 

That has not taken place so I just cant see how it would be inheritance. 
If they will not accept the gift, I think you may need to look for plan B. No harm in trying to make it work, I have seen stranger things happen but there is also no harm having your back up plan ready to go. 

I didn’t even think of checking it to be honest, I’ve never dealt with anything like this before so I just presumed it was classed as inheritance. 

I’m normally so on the ball with things and leave no stone unturned so I’m kicking myself now that I didn’t fully check it out. 

I’ll give it a go, worst case scenario is they don’t accept it and we go with another lender, thankfully he’s already got some plans in place ready to go if they turn it down 😊

[Deleted User]

The Nationwide gifting deposit limits only apply to 90% cases.  Is it a 90% case?

macman

It's not an inheritance, because your dad did not leave anything to you. He died intestate, so your mum inherited the house. She sold the house and has gifted you some of the proceeds.

GN2020

Deleted_User said:

The Nationwide gifting deposit limits only apply to 90% cases.  Is it a 90% case?

It is yes, we can go to 15% deposit if we need to, to be honest our broker recommended the 10% as he thought it would be absolutely fine and it saves us forking out an extra 10k. 

If they don’t accept it, it’s not the end of world I guess 😊

GN2020

macman said:

It's not an inheritance, because your dad did not leave anything to you. He died intestate, so your mum inherited the house. She sold the house and has gifted you some of the proceeds.

I understand that now, it was just at the time I didn’t realise it wouldn’t actually be classed as inheritance.