To ask you if this can be done with crypto

[Jellycatzs]

Ok so I’m looking for a house to buy (first house) and think I’ve found one eg offer has been accepted but I don’t have my offer in principle as of yet as it’s all been fast as in o only viewed the house on Friday. Anyway the AIBU is to do with crypto. A close relative of mine has offered to give/lend me the money for the deposit and they would use their profits from crypto to do this but AIBU to think that the mortgage lenders won’t accept profits from crypto? My relative has said that it has been “earned” legitimately and he can withdraw it to his bank and then send it over to mine but surely it can’t be that simple? Plus I’m sure it was online a while back something about crypto and that you can only gift so much (I think a couple of thousand) to someone that isn’t your spouse each year. Please if someone knows about this stuff I’d appreciate if you could explain it to me. Thanks.

Anyone?

I would have thought you just declare the money to your mortgage company as a cash gift. I don't know if they will check/find out that it previously came from cashing in crypto. You can give as much money as you like to anyone, but if the giver dies within seven years it will be partially or fully liable for IHT and could also be at risk for care home fees if the giver needs care in the future.

I think you would need a statement from the giver that they did give you the money and it wasn't a loan in any way.

Crypto is a bit suspect as it is used a lot for money laundering, so you might or might not get away with it, depending how much the mortgage company check and what their position on crypto is.

The relative can gift the money to you.
There is no tax to pay on gifts.
Your mortgage lender will probably want them to confirm it is a gift and they have no claim on the property.
I don't think your conveyancing solicitor will ask about their source of funds. If they do, earnings from crypto are a legitimate source of money, assuming they have evidence of this if asked.

We bought our house with crypto profits, but I don’t know the rules on gifting money to other people.

Yeah as PP said, it just goes down as a cash gift, because your relative would give it to you in cash, not crypto.

My relative isn’t dodgy though not in the slightest. He spent a considerable amount of time learning about the ins and outs of crypto and investing and he put a small amount of money in which continued to grow into what’s now a considerable sum.

Edit: duplicate

They want to know where you got the money not where the person who gave it to you got it from, you wouldn't be necessarily know.

Crypto profits are legitimate, we pay CGT on them.

It depends how much money it is whether you would need to pay tax on it.

The fact that it is earned from crypto will have no bearing. The only issue would be for example if you were trying to pay the bank directly with bitcoin or similar. This is also interested but may trigger some warnings.

When we bought our house a relative sold some shares to give us £10k towards the deposit and they had to provide proof of the share sale before the bank would accept it.

It's a cash gift. Lots of people get them as help to buy their first home. The bank won't care.

Your problem might not be the mortgage it will be finding a conveyancer to do the legal work.

When they do the compliance for their source of wealth they will also do this on your giftor.

Alot of firms will not deal with crypto and the ones that do, charge a massive amount