Halifax gifted deposit rules

Bozunited94

So. . . My partner is currently selling her house. With the money she is gifting me 20k to put down as a deposit on a house we have had an offer accepted on. She wont be on the mortgage and will be signing all relevant forms to say its a true gift and she has no intention of claiming anything. She will also be living with me in the property. I've spoken to Halifax and they seen to think there should be not issue with this. However has anyone been in the same position and what are my chances with the underwritters? Should also point out its for shared ownership new build property. 

lspell1

Halifax will be fine with this, as they accept "co-habiting" gifted deposits.

Bozunited94

lspell1 said:

Halifax will be fine with this, as they accept "co-habiting" gifted deposits.

So even with it coming from the sale of her house etc that is completely fine? My broker told me they said no which is strange. Everyone at Halifax said its fine. I ended up applying through barclays and being rejected instead. I had an AIP with Halifax before too. I'm going to try with them now. 

K_S

Bozunited94 said:

lspell1 said:

Halifax will be fine with this, as they accept "co-habiting" gifted deposits.

So even with it coming from the sale of her house etc that is completely fine? My broker told me they said no which is strange. Everyone at Halifax said its fine. I ended up applying through barclays and being rejected instead. I had an AIP with Halifax before too. I'm going to try with them now.

@bozunited94 Based on the limited information in your post, Halifax should be fine with it as long as you'll be living in the house together. Off of the top of my head, you will need to show the cash in the giftor or giftee's UK bank account. The broker might have said no from Halifax based on that last bit.

Thrugelmir

Is the Halifax aware that your partner will gifting a sizable sum towards the deposit. What's the reason behind structuring the transaction this way? As in certain circumstances leaves the mortgage lender exposed and at risk. 

Bozunited94

Thrugelmir said:

Is the Halifax aware that your partner will gifting a sizable sum towards the deposit. What's the reason behind structuring the transaction this way? As in certain circumstances leaves the mortgage lender exposed and at risk. 

Yes I've told them that she will be gifting 25k towards the deposit due to her having adverse credit and that she will be living with me. They seem to think this is absolutely fine. Just worried the underwritters will say different. 

lonibra

I had similar a few years ago with Lloyds (same group but don't know if same policy) but they withheld the offer till the property was sold and we could show the money. Completely upset our plans of simultaneously completing.

Bozunited94

lonibra said:

I had similar a few years ago with Lloyds (same group but don't know if same policy) but they withheld the offer till the property was sold and we could show the money. Completely upset our plans of simultaneously completing.

We are planning on doing exactly that. Partners house I currently sold subject to contract and is due to be completed on 3rd of May. We are due to move into my house on the 6th of May. Did you have a gifted deposit from partner that they were happy with?

[Deleted User]

Had a similar case had to go to non simultaneous as the giftor couldn't show funds in a bank account prior to gifting.  Had to wait for transaction to complete and then send funds seperately.  

Halifax are fine with the source of deposit. Worth checking with your solicitor on the finer details abd if this can still be verified as a gift if its not yet sold

Bozunited94

Deleted_User said:

Had a similar case had to go to non simultaneous as the giftor couldn't show funds in a bank account prior to gifting.  Had to wait for transaction to complete and then send funds seperately.  

Halifax are fine with the source of deposit. Worth checking with your solicitor on the finer details abd if this can still be verified as a gift if its not yet sold

So can everything be in place ready? Like could their just be a week overlap between the house being sold and us moving into our new one. It's not the end of the world if we have to spend a week in a travel lodge and move are stuff into storage? Or did the ball not start rolling until the money was sat in a bank?

[Deleted User]

No we just had to delay by a few days. To give time for the money from the sale to hit the wifes account and then to be sent to the husband who then sent it to the solicitors.
The difficulty was with the solicitors policy being that all gifted deposit funds have to be sent to them from the buyers account.   It might be that your solicitor has a different policy.