Gifted Deposit from partner

MWT

Brie said:

They may look on this with a bit more favorably if there's a document from a independent solicitor which confirms that the money is a gift with no comeback in case of breakup.   

Odds on finding an independent solicitor who is prepared to advise the partner that this is a wise move would be close to zero I would hope...

ACG

theyiddo said:

Hi all,

Apols if this has been asked an answered before.

I'm currently buying a house with a gifted deposit from my partner - which will be received upon the sale of their house. The house/mortgage will only be in my name and not theirs, and they will be living with me in the house.

The mortgage provider requires a letter to be completed stating the nature of the gifted deposit.
Which of the below statements would cause the mortgage provider to reduce the size of mortgage they would offer me:

- This gift is given freely, no interest will be charged and no repayment is required

 - There will not be any interest retained in the property being purchased

 - This gift will be secured by a second legal charge repayable on the sale of the property if required

 - This is a loan and it will be expected to be repaid upon the sale of the property with a second legal charge to protect it although no monthly payment will be expected

 - I/we will (Continue to) reside in the property once the mortgage completes

This can be done. 
But...
Your first bullet point - No repayment is required.
Your third bullet point - It will be expected to be paid. 

Its either required to be repaid or it isnt. 

Your choice of lender will I think be limited to maybe 2-3. 

But as kingstreet says, who are you looking at? Because it will either be a deal breaker or it will be fine. 

theyiddo

ACG said:

theyiddo said:

Hi all,

Apols if this has been asked an answered before.

I'm currently buying a house with a gifted deposit from my partner - which will be received upon the sale of their house. The house/mortgage will only be in my name and not theirs, and they will be living with me in the house.

The mortgage provider requires a letter to be completed stating the nature of the gifted deposit.
Which of the below statements would cause the mortgage provider to reduce the size of mortgage they would offer me:

- This gift is given freely, no interest will be charged and no repayment is required

 - There will not be any interest retained in the property being purchased

 - This gift will be secured by a second legal charge repayable on the sale of the property if required

 - This is a loan and it will be expected to be repaid upon the sale of the property with a second legal charge to protect it although no monthly payment will be expected

 - I/we will (Continue to) reside in the property once the mortgage completes

This can be done. 
But...
Your first bullet point - No repayment is required.
Your third bullet point - It will be expected to be paid. 

Its either required to be repaid or it isnt. 

Your choice of lender will I think be limited to maybe 2-3. 

But as kingstreet says, who are you looking at? Because it will either be a deal breaker or it will be fine. 

Thanks - I was struggling to see much of a difference between the 2 statements below - as they both seem to state the same thing but just worded slightly differently:

- This gift will be secured by a second legal charge repayable on the sale of the property if required

 - This is a loan and it will be expected to be repaid upon the sale of the property with a second legal charge to protect it although no monthly payment will be expected

Provider is NatWest.

Emmia

theyiddo said:

ACG said:

theyiddo said:

Hi all,

Apols if this has been asked an answered before.

I'm currently buying a house with a gifted deposit from my partner - which will be received upon the sale of their house. The house/mortgage will only be in my name and not theirs, and they will be living with me in the house.

The mortgage provider requires a letter to be completed stating the nature of the gifted deposit.
Which of the below statements would cause the mortgage provider to reduce the size of mortgage they would offer me:

- This gift is given freely, no interest will be charged and no repayment is required

 - There will not be any interest retained in the property being purchased

 - This gift will be secured by a second legal charge repayable on the sale of the property if required

 - This is a loan and it will be expected to be repaid upon the sale of the property with a second legal charge to protect it although no monthly payment will be expected

 - I/we will (Continue to) reside in the property once the mortgage completes

This can be done. 
But...
Your first bullet point - No repayment is required.
Your third bullet point - It will be expected to be paid. 

Its either required to be repaid or it isnt. 

Your choice of lender will I think be limited to maybe 2-3. 

But as kingstreet says, who are you looking at? Because it will either be a deal breaker or it will be fine. 

Thanks - I was struggling to see much of a difference between the 2 statements below - as they both seem to state the same thing but just worded slightly differently:

- This gift will be secured by a second legal charge repayable on the sale of the property if required

 - This is a loan and it will be expected to be repaid upon the sale of the property with a second legal charge to protect it although no monthly payment will be expected

It is either a gift with no requirement to repay (and no charge over or interest in the property), OR it is a loan requiring repayment and an interest in the property being secured with a charge. 

It cannot be both, as they are mutually exclusive. 

OP,  which is it... Gift? Or Loan?

ACG

Natwest are likely to be fine with it so should be fine. 

But I am not sure how you do not see the difference.

If you give someone a gift for their birthday - do you expect it back? No - therefore it is a gift. 
If you lend someone something - do you expect it back? Yes - therefore it is a loan. 

Hoenir

theyiddo said:

- This gift will be secured by a second legal charge repayable on the sale of the property if required

 

Gifts are given without reservation. This is a secured loan. The first charge lender has the power to veto the registering of a second charge against the property. You'll need their permission. 

theyiddo

ACG said:

Natwest are likely to be fine with it so should be fine. 

But I am not sure how you do not see the difference.

If you give someone a gift for their birthday - do you expect it back? No - therefore it is a gift. 
If you lend someone something - do you expect it back? Yes - therefore it is a loan. 

Because even though the wording says gift, it mentions a second legal charge, which reads more like a loan. 

ACG

Thats what I am saying.