Gifted Deposit

cazirazi

Myself and my wife are just in the process of buying a new house using funds we have in Isa’s and savings to purchase without a mortgage. We want to some time in the future to get a mortgage to raise some money out of the property but due to my age this can only be done if my wife initially is the only person on the title deed as she is younger and still able to obtain a mortgage. 

We have started buying based on this and engaged solicitors to carry out the conveyance work but the solicitors have said that due to most of the funds for the property purchase are in accounts in my name only it will mean I am gifting the money to my wife and therefore she has had to pay for legal fees for this and I have had to fill in a gifting form and go through id checks and money laundering as well.  

The money is our jointly owned funds but I have them in my account as I am retired and pay less tax than my wife so it is more beneficial for the money to be earning interest in my account than hers as Martins advice on his programs promotes. 

Is my solicitor incorrect to state it is a gift and charge extra for this as this money is ours earned over many years?

when I have googled this it seems to be more relevant to people requiring a mortgage to buy in the first place and is what the lender tends to stipulate. 

Voyager2002

I think you should speak to a mortgage broker or lender now... the advice from the solicitor sounds dubious, and certainly there are mortgage products for older borrowers.

silvercar

Given that you are married, rather than an unmarried couple, it all seems rather odd. I wouldn't have thought it would be an issue who pays for what. I also don't see why the property can't be in joint names.

user1977

Though no matter whether it's a gift or not, the source of funds still needs to be checked, which sounds like at least part of what is being charged for.