Having a nightmare trying to buy

bell2020

hello, 

Sorry if this is long, I’ve tried to simplify it.

we are FTB, living in a house that my father in law built and my husband “helped” (carried bricks, swept etc) and we also put quite a bit of money into the house too, such as paying the plasterer, roof trusses, paying for materials and paint etc. The house is due to go on the market next week as my father in law wants to get rid of “assets”, he’s gifting us 25k for a deposit and said once the house sells he’ll also refund the money we put into the house. 

Now the stumbling block - he’s signed a gifted deposit form. However he’s point blank refusing to provide any documentation for proof of funds. He’s told the estate agent he won’t do it and told us. Our solicitors won’t proceed until they have it. And we can’t submit our mortgage application to NatWest (we have a DIP, and my grandad is also gifting 15k which he has provided everything for). 

We can’t see a way round this if he’s refusing to comfy with money laundering regulations and provide bank statements. 

My husband and I are wondering if he did it the other way around - basically did the “refund” for the works we put in and just paid it to us. And then we used that money as our deposit. Is this possible? Is there any declaration or tax implications? We obviously won’t do anything dodgy but equally need to find a way round this. My father in law is a very difficult person to deal with. It’s a case of us not being able to buy a house otherwise. 

Thanks in advance 

bell2020

hello, 

Sorry if this is long, I’ve tried to simplify it.

we are FTB, living in a house that my father in law built and my husband “helped” (carried bricks, swept etc) and we also put quite a bit of money into the house too, such as paying the plasterer, roof trusses, paying for materials and paint etc. The house is due to go on the market next week as my father in law wants to get rid of “assets”, he’s gifting us 25k for a deposit and said once the house sells he’ll also refund the money we put into the house. 

Now the stumbling block - he’s signed a gifted deposit form. However he’s point blank refusing to provide any documentation for proof of funds. He’s told the estate agent he won’t do it and told us. Our solicitors won’t proceed until they have it. And we can’t submit our mortgage application to NatWest (we have a DIP, and my grandad is also gifting 15k which he has provided everything for). 

We can’t see a way round this if he’s refusing to comfy with money laundering regulations and provide bank statements. 

My husband and I are wondering if he did it the other way around - basically did the “refund” for the works we put in and just paid it to us. And then we used that money as our deposit. Is this possible? Is there any declaration or tax implications? We obviously won’t do anything dodgy but equally need to find a way round this. My father in law is a very difficult person to deal with. It’s a case of us not being able to buy a house otherwise. 

Thanks in advance 

Browntoa

Wherever the money appears from , in whatever form, you will have to supply a paper trail to prove the source 

FlorayG

Does he also live in the house? Are you paying rent? The answer will affect your bargaining power with him
Also have you considered the possibility that he might actually be money laundering? It seems strange to refuse to supply proof of money obtained legally.
Also beware of the Deprivation of Assets law - if he's doing this to save on paying out on care in the future that could backfire on you; please do some research on this

gwynlas

Are you tenants of your FIL?
Is he a responsible lanlord providing gas checks etc.?
You could play hardball and tell him that you will be unable to vacate for a sale as he is making it impossible for you to proceed with your purchase

Keep_pedalling

If you mange to overcome his silly attitude, the only tax issue is, unless he is living there, is that he may a CGT liability on the gain in value.  

EssexHebridean

Ask him outright what the issue is, why he has a problem with what is a perfectly normal step in modern times. Make sure he is aware that he is currently preventing you from buying. It sounds like he could be one of those folk who is convinced that everything is an infringement of his liberties - in which case, you may have a stumbling block. 

Tucosalamanca

Where did the money come from to build the house?
Is it possible that undeclared income was used and FiL is getting nervous, now that funds are getting scrutinised?
I'm not suggesting that OP is in any way implicated but it wouldn't be entirely unheard of for someone to try and 'wash' their money through a house sale?

sheramber

Explain to him without his compliance you cannot get a mortgage so cannot move out.

He would have to take steps to get you out. 

Can another family member reason with him? 

QrizB

OP's relative has form for being difficult:

https://forums.moneysavingexpert.com/discussion/6217273/mortgage-and-charge-on-property

https://forums.moneysavingexpert.com/discussion/6217271/charge-on-property-and-mortgage-application

I'm assuming the property now being sold is the one the OP was hoping to buy in those previous threads.

Mr.Generous

gwynlas said:

Are you tenants of your FIL?
Is he a responsible lanlord providing gas checks etc.?
You could play hardball and tell him that you will be unable to vacate for a sale as he is making it impossible for you to proceed with your purchase

I wouldn't do this unless you don't want the gifted £25k. Maybe look at a cheaper house, the money gifted from 2 relatives must be enough for a deposit surely? If you have zero savings yourself I'd be wondering how you will manage with home ownership, quite a few other costs will hit you when you buy a property.