Source of funds declaration

user1977

propertyrental said:

user1977 said:

propertyrental said:

BarelySentientAI said:

Lying about the source of hundreds of thousands of pounds in a transaction that you know they will be asking about seems like a poor choice to me.

Point taken but.... but ..... but  ultimate source is inheritance.

user1977 said:

propertyrental said:

Is it best for nephew to simply tell mortgage lender his source of funds is an inheritance

That will get very messy as soon as the solicitor discovers it isn't.

Discovers how? 

By looking at the evidence which nephew will need to produce to the solicitor in order to evidence the source of funds. Which presumably will show the funds coming from your own savings, and nothing to do with the inheritance.

Would my role as Executor as evidenced in the Will, help? (yes clutching at straws here somewhat).

Alternative is probably to delay the purchase post Grant, but nephew then likely to lose his buyer.

No, because the source of funds is nothing to do with the estate. The fact you're lending it with the "security" being you know about the forthcoming inheritance isn't really relevant.

Nephew is even more likely to lose his buyer if he b*ggers up his mortgage by telling silly lies about where the money is coming from...

BarelySentientAI

propertyrental said:

BarelySentientAI said:

Lying about the source of hundreds of thousands of pounds in a transaction that you know they will be asking about seems like a poor choice to me.

Point taken but.... but ..... but  ultimate source is inheritance.

It isn't.  No more than the ultimate source of my house deposit could be described as "the bits of my future salary that I won't be needing to pay the mortgage".

The source of the money for this transaction is you.  The source of his ability to repay you is the inheritance.

TimmyG1964

Would it be possible for your Nephew to do a Deed of Variation on the will giving £100,000 of his inheritance to you and you then gift him £100,000 that you can evidence already?

I know almost nothing about DoV's for wills so don't know if its even possible and if it is what any risks to you are. I guess the 7 year rule would apply as you would have gifted the £100,000 to your Nephew and if your Nephew inherited less than the expected amount for some reason you could be left short.

FYI, submitted by solicitors, my fathers straight forward probate, granted earlier this month, took just 3 1/2 weeks.

propertyrental

Nice idea but no - it won't work!

Jemma01

You really should encourage your nephew to tell the truth, and explain the situation. His solicitor will give him best advice on the legality of things and a broker will hopefully find him the right lender. 

If they refuse and he doesn't want to lose the buyer, he should consider renting.