Gifted Deposit

Cola133

My Sister and I are buying a house with a NatWest Mortgage. Her long term partner of 20+ years is 'gifting' a deposit of £55k. He will live in the home, but doesn't want to own it. He is much older than my sister and doesn't have enough working years left for a mortgage - we are all very mature adults lol My sister and I have just enough years to get a 20 year mortgage term.

A conveyancer I contacted said that my sisters partner will need to get his own solicitor and sign an 'Occupiers Consent' form. I understand what the form is for, but why does he need another Solicitor for that? Our Mum will be living with us too, so I assumed they would both just sign a form without incurring extra Solicitor costs?

Is there a need to pay another Solicitor, whether it for my sisters partner to sign a Occupiers Consent form or because he wants to gift us the deposit? After getting quotes, it's another £300 we don't want to spend - seems a bit like, money for old rope! He is well aware of all the implications, that basically it will be lost money and that it will affect any Social Service care costs in the future - should he need it. Any advice is gratefully received. Thank you

HampshireH

The solicitor won't act for both as it could be seen as a conflict of interest. Your solicitor cannot objective ensure that he isn't having pressure put on him for example to gift the money without return

Cola133

HampshireH said:

The solicitor won't act for both as it could be seen as a conflict of interest. Your solicitor cannot objective ensure that he isn't having pressure put on him for example to gift the money without return

Does my Sisters partner actually need a separate solicitor to gift a deposit? 

silvercar

Cola133 said:

HampshireH said:

The solicitor won't act for both as it could be seen as a conflict of interest. Your solicitor cannot objective ensure that he isn't having pressure put on him for example to gift the money without return

Does my Sisters partner actually need a separate solicitor to gift a deposit? 

He could use a different partner at the same practise.

amnblog

Cola133 said:

HampshireH said:

The solicitor won't act for both as it could be seen as a conflict of interest. Your solicitor cannot objective ensure that he isn't having pressure put on him for example to gift the money without return

Does my Sisters partner actually need a separate solicitor to gift a deposit? 

 If your Sister's Solicitor says he does, then he does. They will not progress unless he has separate representation.

MWT

Cola133 said:

HampshireH said:

The solicitor won't act for both as it could be seen as a conflict of interest. Your solicitor cannot objective ensure that he isn't having pressure put on him for example to gift the money without return

Does my Sisters partner actually need a separate solicitor to gift a deposit? 

If it was just gifting a deposit then no, but as the partner in going to be occupying the property as well it complicates things and they will need to take advice when signing the occupancy waiver, same goes for your mother.

Your lender will most likely require proof that they have both received independent legal advice from a solicitor regarding the implications of signing the form and ensure they understand their rights and the possible consequences.

Should be possible to get the required advice for no more than £200 or so.

user1977

Cola133 said:

He is well aware of all the implications

You might know that, the lender doesn't. And to avoid the risk of future complaints, they need a solicitor to have taken him into a separate room (possibly in a virtual sense...) and have run through it with him. And that needs to be a solicitor who isn't biased by having an interest in the transaction proceeding, or by having another client already involved.