Gifted deposit.. Help

mi-key

hilladnama said:

It was a gifted deposit given to me from my brother, there was no discussion of it being a loan or lying to the mortgage lender. I'm not trying to phrase my answers carefully, I'm trying to provide a snapshot for some guidance, your reply has actually caused me more stress. 

Try not to get stressed out. There is nothing legally he can do. His solicitor should never have sent the letter, although I get the feeling he hasnt been very honest with them about the situation or they would have advised him he couldn't do anything !

If he did give it as a gift, and now needs money, is there any way you could offer to lend or give him some to help him out?  It  may resolve the situation without causing a further breakdown in relations between you

pinkshoes

hilladnama said:

Thank you everyone, the paperwork has stated how much was gifted, non repayable etc as was part of the paperwork required for my mortgage solicitor. 
Fingers crossed. 

In which case your brother will lose the court case if he tries to change his mind over this being a loan rather than a gift.

If your brother has lost a personal injury claim and is needing money, then he is going to be wasting more money pursuing this. It would be worth replying politely to the letter with a copy of the signed agreement stating that the document enclosed that was signed by himself on X date agreeing that the money was a gift and was never to be repaid, and on this basis his court claim would be unsuccessful.

On what grounds is he trying to challenge this? Did he sign the agreement with a witness present? (e.g. he cannot then claim you forged his signature)

hilladnama

He has lost his personal injury claim due to not being honest about his injuries and he has been caught out and now will prob be liable for the expenses of the company he is claiming from. I think he wants on my title deeds so my property can be sold to pay for this. 

newsgroupmonkey_

hilladnama said:

He has lost his personal injury claim due to not being honest about his injuries and he has been caught out and now will prob be liable for the expenses of the company he is claiming from. I think he wants on my title deeds so my property can be sold to pay for this. 

This is sounding really fishy from his point of view.
Even if he was on the title deeds, he couldn't force you to sell it. He could, however, take out a secured loan against that portion.

However, it sounds like he's prone to being dishonest. He's almost certainly been dishonest to his lawyer.

Does have have any evidence that it was a loan and not a gift? I mean, you have written, legal evidence that it was a gift. But if he rocks up with some texts or whatsapp or whatever with you saying "Yeah, I'll pay you back ASAP", then he may have a case.

I know I'm not the first person to ask this.

EssexHebridean

user1977 said:

silvercar said:

allconnected said:

there are two separate issues here.


the evidential status of the payment, which was documented as a gift ‘for mortgage purposes’ and which the donor is very unlikely to be able to recover through the courts in the absence of contradictory evidence.

and

the actual status of the payment, which will also include any terms agreed between the parties which aren’t documented in writing. If both parties agreed this was paid as a loan,  but they were prepared to lie to the mortgage company about its status, then it’s a loan. Lying to the mortgage company doesn’t change this. The fact that the lender has shot themselves in the foot with regard to legal methods of recovering the loan doesn’t change that.

your answers are phrased carefully to cover what is documented in writing only. Only you and the donor know what you actually agreed at the time. If you know it was given as a loan, then act accordingly. If you’re sure it was a gift, the same. 

When someone makes a "gift" (and there really is no need for "", money can only have one status.) they are required by the lender to take independent legal advice that they understand that a gift isn't repayable.

Which lenders insist on this? I haven't encountered it professionally, and I don't recall it coming up in any previous threads here on the subject?

It is standard that the person signing the gifted deposit letter is advised to take independent legal advice. I'm not aware of any lenders who actually enforce that the gift-givers HAVE taken the independent advice, just that they are clearly informed that they should. In practise, I'd guess that almost none bother. 

ripongrammargirl

They won’t get very far if they gifted you money and put it in writing- just ask anyone trying this on during Judge Rinder shows! It’s, unfortunately, their problem that they now have costs to settle and will have to find a way to pay it because they are not entitled to anything back, especially after so long. The solicitor is just trying to scare you. Don’t let them. Put it in writing (with free legal advice or from Citizen’s advice) that it was a gift without any repayment terms etc and you have the documents (I hope) to prove it. They are just trying their luck which is extremely disgusting behaviour for anyone, let alone family.

eddddy

Just to put this in perspective - your brother probably just paid a solicitor £80 to £100 to write a 'scary' letter to you.

The solicitor probably knows nothing about the background, and hasn't seen the statement that your brother signed.

So maybe reply to the solicitor saying the money was a gift, and enclose a copy of your brother's signed statement.

Once the solicitor sees the copy of the signed statement, they might refuse to send you any more letters.

LHW99

eddddy said:

Just to put this in perspective - your brother probably just paid a solicitor £80 to £100 to write a 'scary' letter to you.

The solicitor probably knows nothing about the background, and hasn't seen the statement that your brother signed.

So maybe reply to the solicitor saying the money was a gift, and enclose a copy of your brother's signed statement.

Once the solicitor sees the copy of the signed statement, they might refuse to send you any more letters.

And make sure it is a copy of the document, not the original!

lauramolonlabe

I really wouldn't worry- it was a gift and you have a letter stating that- they are just hoping a solicitor's letter is enough to scare you into giving them some money back . Changing their mind to that the money was an investment is ingenious , but your letter states it was a gift, so they have no case.
It's important to remember that in English law it is possible to sue ANYONE for ANYTHING- the crux is whether there is a chance of success. The letter you have received is attempted intimidation- for which you could sue them,if they persist-point this out. 
It is likely to stop however, because solicitor's letters cost money and the solicitor in question  will have told your family member that legal action has no prospect of success.