Gifted House Deposit from multiple sources

[RugbySchmugby]

I'm looking for some advice on how best to proceed.

My grandparent died without a will, but had previously voiced a wish that an (undetermined) amount from the estate be given to the grandchildren.
The estate has been split between her children and they have each transferred me a sum with a view to making up a house deposit.

We do have some savings of our own to add to the pot, but without this ‘inheritance’ it would never be possible.

My concern now is that I have been doing some reading around gifted deposits and it seems that most mortgage lenders won’t accept anything from aunts/uncles.

Is there anything that I can now do? Will we now be stuck with the chunk of money and no way to put it towards a house?

Partly it will depend how long you have had the money in your account, one month might be an issue, one year might not. As far as I know they will extend as far as blood aunts and uncles, but it does depend on your lender.

The best option is probably to have a good chat with your broker.

Your probably need to speak to a mortgage broker as it will depend on the lender and also how long you have had the money. My parents gifted me and my sister money, Dsis was already in the process of looking for a house so used the money within 6 weeks of receiving it so her and my parents had to prove where it came from. I only purchased 18 months later and didn't have to prove anything as the money had been in my name for long enough.

If you’ve had the money in your account for more than 3 months, does it matter?

@Dooopy

If you’ve had the money in your account for more than 3 months, does it matter?

Yes, some go back at least 12 months, when my brother bought they wanted two years bank statements for his savings.

I’m not meaning to suggested something that’s not allowed, so happy to be shot down and would suggested you discuss with your solicitor, but… could relatives not transfer the money to your parents, then they give to you as one sum? It might be too late in terms of paper trail, though.

Have they already transferred the money? If not they could transfer to your parent and then you are only receiving a gift from a parent not multiple people.

I had saved up a large deposit, then lent it to my sister, who paid it back to me over a few months shortly before I bought a house. The building society decided it was sketchy and refused to accept it as a deposit.
I had to ask friends and relations to ‘gift’ me the equivalent amount to replace the ‘sketchy’ money. Once the sale had gone through I then ‘gifted’ the money back to them.
Each of them had to fill out a form for the building society and say it wasn’t a loan but a gift.
The building society were not at all interested in my relationship to those doing the gifting. They were three friends and my parents-in-law.
The only downside would have been if any of them had died within seven years of making the gift, in which case it would have affected their estate.
I know this isn’t exactly the same as your situation, but sometimes you just have to be a bit creative to get on the housing ladder. Good luck.

DD recently bought with a large gifted deposit and 21k of her own savings.

She had to prove three months current bank statements and 12 months deposit savings statements and we had to show how our gift was saved. On inheritance or parental gifts were accepted.

Yours is an inheritance though kind of, so a good broker might be able to work with you providing you can get proof where the funds started.

From what I’ve read recently, there’s a difference between gifts which are gifts (ie. Doesn’t need paying back), and gifts which are loans (ie. To be paid back).

It sounds like yours is a gift, not a loan. Some mortgage people will accept a written letter documentation that it’s a gift and the people do not want it to be paid back. Also,it could be subject to inheritance tax (if the person dies within seven years).

We recently bought a house with a gifted deposit - part through a parent from a grandparents estate (with the similar undisclosed amount gifted rather than willed) and the rest from a far flung relation that's only a relation through marriage not blood. Neither the solicitor nor the mortgage brokers etc. Had any problem with it!

You may be asked for a letter to say it is a genuine gift and they have no claim over the property. The solicitors should ask where the money came from if you have a big amount that has just appeared.