Gifted deposit from mum but now want to sell/move out

MWT

BikingBud said:

I don't see anywhere in the OP's query that there is any intention of turfing the mother out.

househappy2025 said:

 I now want to move out and need advice. Would I be able to move the mortgage with me if we sold? I would be moving to a smaller property and less in price 
or is it best to sell the property pay off the mortgage and seperate?

There is a lot of 'I' in there and mention of 'separate' at the end, hence my query.

Either way, hard to give much guidance as you say and refer to broker is always good advice.

sheramber

It has been assumed the ‘we’ live together applies to OP and mum,

But does it? Or is it OP and partner live together?

BikingBud

MWT said:

BikingBud said:

I don't see anywhere in the OP's query that there is any intention of turfing the mother out.

househappy2025 said:

 I now want to move out and need advice. Would I be able to move the mortgage with me if we sold? I would be moving to a smaller property and less in price 
or is it best to sell the property pay off the mortgage and seperate?

There is a lot of 'I' in there and mention of 'separate' at the end, hence my query.

Either way, hard to give much guidance as you say and refer to broker is always good advice.

Yes I can see that now, but could be both ways "if we sold".

I come from the perspective of many people talking about "my children" when in almost all cases it should be "our children". Perhaps I should stop surmising about peoples' inaccurate selection of possessive adjectives.

Hoenir

MWT said:

Hoenir said:

MWT said:

silvercar said:

MWT said:

househappy2025 said:

Yes with NatWest and they do it so I can enquire with them

Keep in mind that you still have to be able to meet the affordability criteria for your new mortgage, it is just the terms of old mortgage that are ported to the new mortgage.

Have you agreed with your mother what the split of the proceeds would be given she originally gifted the deposit?

If she gifted the deposit, and signed something with the solicitor, that it was a gift, why would anything be given back. It isn't normal to return gifts.

In this case it was a gift with reservation, which was the expectation of continued right to occupy it seems...

So it seems like a fair question...

Any non mortgage parties occupying the property should have completed "a declaration of no interest in property".  As it impinges on the lender's ability to obtain possession in the event of default. 

... of course, but as we frequently tell people on here, be careful when doing this sort of thing as you can find yourself homeless if the party you have moved in with changes their mind later and sells...

Failure to do so in breach of the mortgage terms and conditions. Lender's have all bases covered. Hopefully you aren't providing "advice" to clients. 

MWT

Hoenir said:

MWT said:

Hoenir said:

MWT said:

silvercar said:

MWT said:

househappy2025 said:

Yes with NatWest and they do it so I can enquire with them

Keep in mind that you still have to be able to meet the affordability criteria for your new mortgage, it is just the terms of old mortgage that are ported to the new mortgage.

Have you agreed with your mother what the split of the proceeds would be given she originally gifted the deposit?

If she gifted the deposit, and signed something with the solicitor, that it was a gift, why would anything be given back. It isn't normal to return gifts.

In this case it was a gift with reservation, which was the expectation of continued right to occupy it seems...

So it seems like a fair question...

Any non mortgage parties occupying the property should have completed "a declaration of no interest in property".  As it impinges on the lender's ability to obtain possession in the event of default. 

... of course, but as we frequently tell people on here, be careful when doing this sort of thing as you can find yourself homeless if the party you have moved in with changes their mind later and sells...

Failure to do so in breach of the mortgage terms and conditions. Lender's have all bases covered. Hopefully you aren't providing "advice" to clients. 

I usually try to avoid using the word 'advice' as nothing posted on here meets that standard and certainly I am never providing 'advice' to anyone, but what we do see on here from time to time is older parents planning blend their funds with their children to purchase property to be held in the children's name only and of course with the required signing of the waiver of residency to meet the lenders needs, I am not suggesting they should avoid signing the waiver, but they need to understand the potential consequences...

This sort of plan is not always going to end well as it neither avoids IHT due to the 'gift with reservation' rules, nor does it ensure a secure future for them if there is a divorce/bankruptcy etc. 

Emmia

sheramber said:

It has been assumed the ‘we’ live together applies to OP and mum,

But does it? Or is it OP and partner live together?

I asked exactly this question in the first response.