Mortgage gift deposit form and declaration of trist

jakeoliamo1

Could someone help me please?
my parents purchased a property with a family member and a gift deposit form was used

the relationship turned sour. My parents sought legal advise and had in place a declaration of trust and constructive trust drawn up

to cut a long story short while my parents where on holiday their belongings were packed up and moved into storage and locks changed

the property has now been sold

my parents now realise 
the form signed was done against a rejected mortgage but used for an approved mortgage

they have not had money returned on the sale of the property 

they have spent £15000 on solicitors but it seems the only way to resolve is to go to court which will cost in excess of £50000

maotgage company have been useless 

it is unjust and unfair

please if anyone has insight or advise please let me know? 

RAS

Try the house buying and renting forum; get an admin to transfer.
and give enough information for anyone to even ask questions, let alone answer questions.

Keep_pedalling

If your parents declared the money they put into this was a gift, then a gift it was and they have no chance of getting it back. I know some people declare a loan as a gift, but apart from committing mortgage fraud, it can backfire spectacularly as the person receiving the money has documentary proof that it was a gift.

pinkshoes

When you say they bought it with a family member, were they on the mortgage and deeds?

Or did they just gift a deposit to help a family member out? If it was just a gift, then they would have had to declare this to the mortgage company, in which case they cannot just get it back. 

How much was the "gifted" deposit? Why will it cost so much to go to court?

Has a "letter before action" been sent to the other person?

Were they living there with the other person? or was it just them living in the house? 

I'm thinking they cannot have been on the deeds if the house was sold without them being able to stop it??

I think you need to give far more detail before people can help you.

Keep_pedalling

pinkshoes said:

When you say they bought it with a family member, were they on the mortgage and deeds?

Or did they just gift a deposit to help a family member out? If it was just a gift, then they would have had to declare this to the mortgage company, in which case they cannot just get it back. 

How much was the "gifted" deposit? Why will it cost so much to go to court?

Has a "letter before action" been sent to the other person?

Were they living there with the other person? or was it just them living in the house? 

I'm thinking they cannot have been on the deeds if the house was sold without them being able to stop it??

I think you need to give far more detail before people can help you.

It would be nice to get answers to your questions, but going by the history of the OPs previous threads that is highly unlikely. 

jakeoliamo1

pinkshoes said:

When you say they bought it with a family member, were they on the mortgage and deeds? 

Or did they just gift a deposit to help a family member out? If it was just a gift, then they would have had to declare this to the mortgage company, in which case they cannot just get it back. 

How much was the "gifted" deposit? Why will it cost so much to go to court?

Has a "letter before action" been sent to the other person?

Were they living there with the other person? or was it just them living in the house? 

I'm thinking they cannot have been on the deeds if the house was sold without them being able to stop it??

I think you need to give far more detail before people can help you.

The “gift” amounted to £165000. The entire equity of my parents home. 

Their name was not on the title deeds

the form was never sent with a covering letter stating the held no right to the home or the money. Also the fact that this form was signed against a mortgage that was rejected and reused for a new mortgage

i do not know what a letter before action is?!

my parents lived in this house with the family members ( that is my sister her husband and their children)

the cost of court, who knows. Civil law is old and too many routes to take. A barristers opinion is my parents have a 90% chance of winning but the cost is likely to negate the recouping of money

Keep_pedalling

jakeoliamo1 said:

pinkshoes said:

When you say they bought it with a family member, were they on the mortgage and deeds? 

Or did they just gift a deposit to help a family member out? If it was just a gift, then they would have had to declare this to the mortgage company, in which case they cannot just get it back. 

How much was the "gifted" deposit? Why will it cost so much to go to court?

Has a "letter before action" been sent to the other person?

Were they living there with the other person? or was it just them living in the house? 

I'm thinking they cannot have been on the deeds if the house was sold without them being able to stop it??

I think you need to give far more detail before people can help you.

The “gift” amounted to £165000. The entire equity of my parents home. 

Their name was not on the title deeds

the form was never sent with a covering letter stating the held no right to the home or the money. Also the fact that this form was signed against a mortgage that was rejected and reused for a new mortgage

i do not know what a letter before action is?!

my parents lived in this house with the family members ( that is my sister her husband and their children)

the cost of court, who knows. Civil law is old and too many routes to take. A barristers opinion is my parents have a 90% chance of winning but the cost is likely to negate the recouping of money

Can you clarify a couple of points please because the above is somewhat confusing.

Did your parents sell their home and move in with your sister using the equity from the sale to help your sister buy the home they shared?

Can you also confirm that they filled in a form and covering  letter saying that it was a gift to obtain a mortgage and that this letter was then subsequently used to obtain a mortgage from a different lender?

jakeoliamo1

Keep_pedalling said:

jakeoliamo1 said:

pinkshoes said:

When you say they bought it with a family member, were they on the mortgage and deeds? 

Or did they just gift a deposit to help a family member out? If it was just a gift, then they would have had to declare this to the mortgage company, in which case they cannot just get it back. 

How much was the "gifted" deposit? Why will it cost so much to go to court?

Has a "letter before action" been sent to the other person?

Were they living there with the other person? or was it just them living in the house? 

I'm thinking they cannot have been on the deeds if the house was sold without them being able to stop it??

I think you need to give far more detail before people can help you.

The “gift” amounted to £165000. The entire equity of my parents home. 

Their name was not on the title deeds

the form was never sent with a covering letter stating the held no right to the home or the money. Also the fact that this form was signed against a mortgage that was rejected and reused for a new mortgage

i do not know what a letter before action is?!

my parents lived in this house with the family members ( that is my sister her husband and their children)

the cost of court, who knows. Civil law is old and too many routes to take. A barristers opinion is my parents have a 90% chance of winning but the cost is likely to negate the recouping of money

Can you clarify a couple of points please because the above is somewhat confusing.

Did your parents sell their home and move in with your sister using the equity from the sale to help your sister buy the home they shared?

Can you also confirm that they filled in a form and covering  letter saying that it was a gift to obtain a mortgage and that this letter was then subsequently used to obtain a mortgage from a different lender?

Apologies, my parents sold their home and their sale was used for the joint purchase   When my brother in law applied for the mortgage the gift deposit form was used. That mortgage offer was rejected ( I do not know why)

apparently he “sorted it “ with the same lender but the form was never re done. Therefore to my mind that form is null and void?!

(it only came to light recently that the original application was rejected)

No covering letter was requested by the lender therefore one was never written 

[Deleted User]

jakeoliamo1 said:

Keep_pedalling said:

jakeoliamo1 said:

pinkshoes said:

When you say they bought it with a family member, were they on the mortgage and deeds? 

Or did they just gift a deposit to help a family member out? If it was just a gift, then they would have had to declare this to the mortgage company, in which case they cannot just get it back. 

How much was the "gifted" deposit? Why will it cost so much to go to court?

Has a "letter before action" been sent to the other person?

Were they living there with the other person? or was it just them living in the house? 

I'm thinking they cannot have been on the deeds if the house was sold without them being able to stop it??

I think you need to give far more detail before people can help you.

The “gift” amounted to £165000. The entire equity of my parents home. 

Their name was not on the title deeds

the form was never sent with a covering letter stating the held no right to the home or the money. Also the fact that this form was signed against a mortgage that was rejected and reused for a new mortgage

i do not know what a letter before action is?!

my parents lived in this house with the family members ( that is my sister her husband and their children)

the cost of court, who knows. Civil law is old and too many routes to take. A barristers opinion is my parents have a 90% chance of winning but the cost is likely to negate the recouping of money

Can you clarify a couple of points please because the above is somewhat confusing.

Did your parents sell their home and move in with your sister using the equity from the sale to help your sister buy the home they shared?

Can you also confirm that they filled in a form and covering  letter saying that it was a gift to obtain a mortgage and that this letter was then subsequently used to obtain a mortgage from a different lender?

Apologies, my parents sold their home and their sale was used for the joint purchase   When my brother in law applied for the mortgage the gift deposit form was used. That mortgage offer was rejected ( I do not know why)

apparently he “sorted it “ with the same lender but the form was never re done. Therefore to my mind that form is null and void?!

(it only came to light recently that the original application was rejected)

No covering letter was requested by the lender therefore one was never written 

Surely a lender would use the same gifted deposit form for all their mortgage products so I’m not sure that your view that the original form signed is null and void holds any water but then again I’m not a lawyer. 

Your parents did sign a form declaring the money as a gift even though the money wasn’t really a gift as the expectation was to own part of the property. There was then a declaration of trust and constructive trust retrospectively drawn up. Did your sister and brother in law accept and sign these retrospective documents? 

Keep_pedalling

I can’t see that it is null and void just because the mortgage was changed. Your parents signed a letter to say the money was a gift, which is pretty much a slam dunk. To now claim that it was never a gift but a (successfully) attempt at mortgage fraud is not going to look good in a court. 

It is unfortunate that you sibling has taken advantage of your parents naivety, but to throw another £50k at this would just be throwing good money after bad.