Nationwide gifted deposit

Rumana03

Hi,

I've gifted some money to my husband to buy a property. Our solicitor asked me to fill/ sign a form to say the amount I am gifting & to say that I won't be asking for the money to be re-paid.

As we are almost near completion, the solicitor is now saying that it will take another week or two because of the gifted deposit. I don't even know what the issue is as I have already filled the form & provided bank statements. The money being given has been in the account for over 2 years...will Nationwide now go back further to see where it came from? Like will they ask for more bank statements dating back further I mean?

K_S

Rumana03 said:

Hi,

I've gifted some money to my husband to buy a property. Our solicitor asked me to fill/ sign a form to say the amount I am gifting & to say that I won't be asking for the money to be re-paid.

As we are almost near completion, the solicitor is now saying that it will take another week or two because of the gifted deposit. I don't even know what the issue is as I have already filled the form & provided bank statements. The money being given has been in the account for over 2 years...will Nationwide now go back further to see where it came from? Like will they ask for more bank statements dating back further I mean?

@rumana03 I assume you're going to be residing in the property being purchased with the gifted funds? Where that's the case, usually there's an additional consent form that needs to be submitted.

Usually this would have been done earlier in the conveyancing process, perhaps the breakdown of deposit was not accurately captured on the mortgage application.

Perhaps one or both of the above are part of the reason for the delay at this stage.

If the funds have been in your UK account for 2+ years, I wouldn't expect Nationwide (more precisely the solicitor on behalf of Nationwide) to go beyond a maximum of 6 months or so.

Rumana03

K_S said:

Rumana03 said:

Hi,

I've gifted some money to my husband to buy a property. Our solicitor asked me to fill/ sign a form to say the amount I am gifting & to say that I won't be asking for the money to be re-paid.

As we are almost near completion, the solicitor is now saying that it will take another week or two because of the gifted deposit. I don't even know what the issue is as I have already filled the form & provided bank statements. The money being given has been in the account for over 2 years...will Nationwide now go back further to see where it came from? Like will they ask for more bank statements dating back further I mean?

@rumana03 I assume you're going to be residing in the property being purchased with the gifted funds? Where that's the case, usually there's an additional consent form that needs to be submitted.

Usually this would have been done earlier in the conveyancing process, perhaps the breakdown of deposit was not accurately captured on the mortgage application.

Perhaps one or both of the above are part of the reason for the delay at this stage.

If the funds have been in your account for 2+ years, I wouldn't expect Nationwide (more precisely the solicitor on behalf of Nationwide) to go beyond a maximum of 6 months or so.

Yes I signed an additonal form saying that I wouldn't have any interest in the property although I will be living there.

We were supposed to give 10% deposit which is what I had written on the gift deposit form but since then Nationwide asked us for 15%...I suppose that might make my form incorrect & I may have to increase the amount I have written..I'm not sure as the solicitor has not said anything yet. He seems to be working very slow.

anselld

Seems an odd arrangement between married couple.  Separate finances fair enough, but in the event of divorce all assets are in the melting pot so not sure how any non-interest agreement with the lender would ever be enforceable in that scenario.

simon_or

anselld said:

Seems an odd arrangement between married couple.  Separate finances fair enough, but in the event of divorce all assets are in the melting pot so not sure how any non-interest agreement with the lender would ever be enforceable in that scenario.

It's probably just a tick box exercise to satisfy the bank's criteria for a gifted deposit by a non-borrowing occupier.

jonnydeppiwish!

simon_or said:

anselld said:

Seems an odd arrangement between married couple.  Separate finances fair enough, but in the event of divorce all assets are in the melting pot so not sure how any non-interest agreement with the lender would ever be enforceable in that scenario.

It's probably just a tick box exercise to satisfy the bank's criteria for a gifted deposit by a non-borrowing occupier.

I guess the OP already owns another in the background and they can avoid paying the 3% surcharge by buying in the husband's sole name.

I may be wrong but I’m pretty sure you can’t avoid the 3% surcharge if you’re married and already have a property?

Rumana03

anselld said:

Seems an odd arrangement between married couple.  Separate finances fair enough, but in the event of divorce all assets are in the melting pot so not sure how any non-interest agreement with the lender would ever be enforceable in that scenario.

I own a property & I didn't want to put my name into this one. My property only has 6 years left on the mortgage. 
I'm currently not working so putting my name into the new property wouldn't have helped much. And if anything were to go wrong (in terms of payments) I wouldn't want the bank taking money from my property.

simon_or

jonnydeppiwish! said:

simon_or said:

anselld said:

Seems an odd arrangement between married couple.  Separate finances fair enough, but in the event of divorce all assets are in the melting pot so not sure how any non-interest agreement with the lender would ever be enforceable in that scenario.

It's probably just a tick box exercise to satisfy the bank's criteria for a gifted deposit by a non-borrowing occupier.

I guess the OP already owns another in the background and they can avoid paying the 3% surcharge by buying in the husband's sole name.

I may be wrong but I’m pretty sure you can’t avoid the 3% surcharge if you’re married and already have a property?

You're absolutely right, apologies, I've corrected my post.

Rumana03

Yes we can't avoid the 3% surcharge. Our solicitor keeps insisting that we don't need to pay it though and has even written on the payment breakdown the lower stamp duty.

My intention for not including myself in this property wasn't to do with stamp duty though. I just want to protect the property I already own and not link myself financially to this new property.

jonnydeppiwish!

Rumana03 said:

Yes we can't avoid the 3% surcharge. Our solicitor keeps insisting that we don't need to pay it though and has even written on the payment breakdown the lower stamp duty.

My intention for not including myself in this property wasn't to do with stamp duty though. I just want to protect the property I already own and not link myself financially to this new property.

I think that if something was to happen either way, you both may have a beneficial interest, especially if you/they have paid into the mortgage/upkeep etc.
make sure you keep it very separate!
https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/bankruptcy/partners-and-bankruptcy/is-your-home-at-risk-if-your-partner-is-bankrupt/

user1977

Rumana03 said:

anselld said:

Seems an odd arrangement between married couple.  Separate finances fair enough, but in the event of divorce all assets are in the melting pot so not sure how any non-interest agreement with the lender would ever be enforceable in that scenario.

And if anything were to go wrong (in terms of payments) I wouldn't want the bank taking money from my property.

But they'll take the share of the equity you've gifted? (unless there's a surplus and it goes back to your husband).

And you'll still be evicted. At least with a joint account you'd have some control over what was going on.