Gifted deposit for a house from DP

[sbhydrogen]

My DP and I are in the process of buying a house. We're applying for a mortgage but – surprise, surprise – it's not plain sailing. He's not from these shores; his visa expired but is in the process of being renewed. Despite a letter from his solicitor stating that they're waiting for some app from the Home Office in order to renew the visa, he's not allowed to be a joint applicant on our mortgage application.

I can just about afford to be a sole mortgage applicant, but DP has half the deposit. He can write a gifted deposit letter, but it has to state that he has no financial interest in the house. I'd like to add his name to the mortgage and title deeds to the house when his visa gets renewed (whenever that is), but is this possible after previously stating that he has no interest in the house?

Has anybody had any experience of this, and how did it work out? Are you a solicitor and can just confirm that all will be okay? Or will we only be able to add him to the title deeds once the mortgage is paid off?

You should take advice from your own solicitor Op.

I've tried to get in touch with my solicitor but they haven't gotten back to me, and I've got my mortgage application meeting tomorrow morning so I'm turning to the collective wisdom of MN.

Bugger, I didn't want to drip-feed!

Definitely a question for your own solicitor - you will get very inconsistent legal advice on mumsnet!

You need to pay for proper legal advice

I doubt you'll get a bank to agree to a gifted deposit from a partner who will be living in the house (I presume?) but not on the mortgage.

I hope your meeting is with a whole of market broker and not just your own bank!

When I was not working we bought a very cheap house in a very cheap area. My potential earnings were not included in the calculations of how much they could lend us, but the lender liked having a second name on the mortgage. It is another avenue to pay for the house if his job had gone. I know they don't like people other than the people on the mortgage having a claim on the house as they like to be able to repossess if needed.
I'd be wary if I were him, putting all his money in a house he signs legal documents to say he has no claim on.

It's up to the lender and all lenders have different rules about gifted deposits so your solicitor wouldn't really be able to advise you anyway. Speak to your mortgage broker and see if they can find a lender who will be able to accommodate you with this situation. But it would be hard for your partner as they would have to really trust you as they are signing away all their interest in that money. Its a tricky one.

My lender would not accept a gifted deposit from anyone other than my parents. My XH wanted to give me the money (well after divorce) but they said no (ended up having it gifted from my parents and XH gave them the money later).

But I was quite a high risk so it was a specialist ftb mortgager so hope you have better luck.

Everything would be fine if the Home Office approved his visa in time 🙄

I'd be wary if I were him, putting all his money in a house he signs legal documents to say he has no claim on.
Yeah, this is an issue for him. I'd be happy to sign the house over to him 50/50 at the earliest opportunity. We're not married, but we will be, and we've just had a baby.

(ended up having it gifted from my parents and XH gave them the money later).
Ha, this is an interesting idea, and could work!

The lender might be happy with the gifted deposit if it just says ‘to be repaid upon sale’. As long as your not expected to make any monthly repayments now (which could affect your affordability).

I really think you should reschedule the mortgage meeting and get proper legal advice.

From a lay perspective, on the basis of what you've written here, I think your DP is in a vulnerable position and would be foolish to gift you the deposit and have no legal way to regain that and that you would be unreasonable to ask him to do so.

If you can't get a mortgage with his financial position protected you should wait until his visa position is sorted out.

I work in conveyancing and this does happen a lot. You can remortgage the property later on and transfer into joint names. Or you could get the lenders consent to transfer into joint names if you don’t want to remortgage. However there are Stamp Duty implications on the second option. Your solicitor will be able to talk you through it.

You really need specific professional advice. Your mortgage with VISA and potential legal issues is not the time to get opinions from random people online

Yeah, this is an issue for him. I'd be happy to sign the house over to him 50/50 at the earliest opportunity. We're not married, but we will be, and we've just had a baby.

So why do you want to do it? It's not fair to him.

Bit late now but why didn't you wait until it was all sorted before proceeding with a house purchase?!

I think you should get his visa sorted first, then look to get a mortgage? All the other legal options are complex and unless your solicitor has a very straightforward solution you’re both getting tied up with possible issues. For such a big purchase, you all need to be fully covered legally.

My lender wouldn’t be happy with anyone gifting the deposit if they were going to live in the property. I reckon that’s your first hurdle.

Speak to your broker -he might be able to find you a lender that is ok with it. Be upfront though. Cases do decline at the last minute if people haven’t told the whole truth