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

haras_n0sirrah

If you can do 15% deposit why not change it to 15% deposit with nationwide and do the gift letter. 

GN2020

haras_n0sirrah said:

If you can do 15% deposit why not change it to 15% deposit with nationwide and do the gift letter. 

It’s not too late in the application to change it? 

We only went for the 90% to save forking out another 10k, thankfully, I’m in a very fortunate position where I can do that, I just wanted to keep it back as an emergency fund of sorts. 

GN2020

Well, my mam wrote the letter, it was sent to Nationwide via our broker on Thursday. 

I was fully prepared to go ahead and up the deposit to 15%, but I received a text message and an email this morning to say the application has moved forward and the valuation has been booked for 18th November!

I’m just waiting for our broker to confirm that they accepted the letter, he won’t be able to find out for definite until Monday when he’s actually back to work, but it sounds like they have done! It’s a positive sign at least! 

We’re pretty much into week 9 of the application now and they’ve been doing the underwriting so I’m hoping this is a step in the right direction. 

The valuation is the one bit I’m not worried about to be honest, the house was up for £235 last year, reduced to £209 earlier this year and we got it for £200. 

JGB1955

Your mother just needs to make a Deed of Variation - that way the money was never hers but was pased directly to you.  

MWT

JGB1955 said:

Your mother just needs to make a Deed of Variation - that way the money was never hers but was pased directly to you.  

It sounds like the numbers are probably too small to worry in this case, but in general you do need to have an eye on the inheritance tax implications when taking that route and shifting money from the spouse to another individual.

Hopeful it is all sorted now anyway, without doing this at all.

GN2020

JGB1955 said:

Your mother just needs to make a Deed of Variation - that way the money was never hers but was pased directly to you.  

Unfortunately, dad passed without making a will. 

My mam put everything in the letter so I’m hoping the fact the valuation has now been booked in is a good sign! 

GN2020

MWT said:

JGB1955 said:

Your mother just needs to make a Deed of Variation - that way the money was never hers but was pased directly to you.  

It sounds like the numbers are probably too small to worry in this case, but in general you do need to have an eye on the inheritance tax implications when taking that route and shifting money from the spouse to another individual.

Hopeful it is all sorted now anyway, without doing this at all.

Dads full estate was about half of the inheritance tax limit so I didn’t have that worry thankfully. 

I’m keeping everything crossed that it’s all sorted out now 😊

MWT

GN2020 said:

I’m keeping everything crossed that it’s all sorted out now 😊

Agreed, hopefully it will be smooth sailing from here.

If you even need to come back to this though, you can have a 'Deed of Variation of Intestacy' precisely for situations where there was no will.

Hopefully not needed now though.