Borrowing Deposit

E

Erith

Registered User
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114
I want to lend someone some money for their deposit. I am happy to call it a gift and wait until/if they are flush to make me a return gift. I know this is not legitimate but since I do not intend to make this a formal loan and there is no pressure on the borrower to repay it until they are well able to, it does not affect their repayment capacity in servicing their mortgage and I see nothing wrong with it.

My questions are:

Will the bank want to know the provenance of the money?

What am I missing?
 
I know in a friends case the bank may require You to get independent legal advice and sign a declaration that you have no interest in the property and that it is a gift and not a loan so that if they need to repossess you wont be declaring that you're entitled to a share. I would think if you just transfer the money into an account without discussing it it might raise a red flag with the money laundering officer in the bank
 
Thanks bleary, it's 10K so money laundering is not an issue. But listen to this: unprompted, today the lender told the person I want to give the money to that if they are borrowing the deposit they need to say it is a gift. Amazing.
 
Unregistered said:
Thanks bleary, it's 10K so money laundering is not an issue. But listen to this: unprompted, today the lender told the person I want to give the money to that if they are borrowing the deposit they need to say it is a gift. Amazing.
Click to expand...

BTW, I am not criticising your actions but 10/15 years ago they were saying "if you say you are not resiednt then you do have to pay DIRT"

Will they ever change?
 
My girlfriends mam helped us out by getting a loan of 10k from the bank for us too. Before we went to sign the contract for the apartment with our solicitor he asked us to get her to write a note saying she gave us the money as a gift and expected nothing in return on it.

We wrote out the following and note and got her to sign it and when we went in the solicitor said it was "fine, perfect" :

02 Nov 2004

To whom it may concern,

I am giving x and y a gift of €10k. I want nothing in return for this, it is strictly a no-strings-attached gift.

Signed
__________
 
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