Draft letter for mortgage- deposit gift

S

Sesed

Registered User
Messages
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Can anyone give me an idea of the letter I need to send with my mortgage application to cover a gift from parents? Will this do? Am I missing anything?

i.e.
Dear <Bank>

We <Mr and Ms. Sesed> gift £x to our daughter <Sesed> to purchase a property. This gift is unconditional and non-refundable.

Sincerely
Mr and Ms Sesed
 
I would strongly recommend you have the money in your account outright.
I had serious trouble with someone trying to buy my house a few years ago.
They went to their solictor with the same setup and signed contracts.
The person who was giving them the money then passed away.
They had a lot of trouble getting the money and really messed us around.

The person you are looking to buy the house from could tell you to jump if you can't close the sale contract and maybe sue you to close the contract.
Be very careful signing house contracts with only a letter as assumed monies toward the total price.
If something happened to your folks in the interim of the contact being signed, the money could take upto a year to be released from probate.
I know a gift letter is accepted practice but after what happened to me, I would never do it again.
Conditions are all money in the purchasers name - no exceptions.

Please forbid anything happening to your folks.
But thats what happened me.
 
Thanks for the reply. It is not for that far along stage it is for the bank. It is not 100% neccessary as we have the 8% deposit ourselves but it probably is best to have it show why mortgage we are applying for plus our savings are less than the offer price. I wouldn't sign anything without cash there, but this is just mortgage application stage
 
Power ahead so.
Wow... you have a deposit!
Remember when they were a mythical term in mortgage speak?

Good luck with the house
 
Thank you, I'll need it I have so much to do before I can even make an offer!!
 
Address

Date


To Whom It May Concern:


We wish to confirm that we are gifting the sum of € _______________ to ___________________________towards the purchase of the property at _______________________________________.

I would like to confirm that the monies are a gift and will not be repayable at any time. We would also like to confirm that we waive any interest in the property on foot of making the gift.

If you have any queries in relation to the above, please do not hesitate to contact me.

Yours sincerely




___________________ _______________________
 
Since each parent can gift up to 3000 per annum to the op, and that's before they start using up their CAT threshold of 250,000, it is unlikely that there would be any immediate tax liability.
 
are banks giving mortgages with only 8% deposit these days? I presumed it was much higher like 20% before they will loan anyone money
 
Mrs Vimes said:
Since each parent can gift up to 3000 per annum to the op, and that's before they start using up their CAT threshold of 250,000, it is unlikely that there would be any immediate tax liability.
Click to expand...

So, the first 3k per parent is exempt, and then the remainder will be assessed as part of any inheritance we get i.e. calculated as if we were getting it then?
 
Will bank look for bank statement of parents account if its a gift or is the letter enough.
 
The LTV limit does not include any restriction on source of the deposit funds other than a prohibition on the lending bank providing loans or using other means to get around the rules.
 
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