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Original poster

When does it become mine and not a gift?

46 replies

LoveGoldberg · 29/12/2021 12:07

My partner is selling his house, he has been made redundant and got in a financial mess, he has a job lined up but not until February. I tried to buy it from him but he would have to give me the deposit but the banks wouldn’t allow it because he isn’t a relative, and he would continue living with me.
We’ve spoke about it and he would like to share the profits of the house with me as even though my name wasn’t on the mortgage I’ve invested a lot. I would like to use this as a deposit to buy somewhere just in my name for us. However as the bank declined me being able to use this as a deposit what can we do?
I won’t be buying for a year or so, can I put it in premium bonds and at some point will it become mine and not his money?

OP posts:
gogohm · 29/12/2021 12:36

Once it's actually in your account it's your money, they only question if you can't prove that you have the money at the time of application. You will need to demonstrate where it came from for money laundering reasons. I would suggest using a broker

Original poster
LoveGoldberg · 29/12/2021 12:42

The issue came through a broker. I had to prove where it was from when they got the mortgage offer and they then said I couldn’t use it as it gave someone an invested interest in the property which could cause a problem if the house was repossessed. They said it would only be accepted if it was a close relative that wouldn’t be residing in the property.

OP posts:
ChateauMargaux · 29/12/2021 12:45

Is there another way round this without having to buy and sell? Can you put it in joint names and you pay the mortgage?

Original poster
LoveGoldberg · 29/12/2021 13:10

@ChateauMargaux we’ve tried everything! The issue is that he fell behind with payments for the mortgage and a couple of other things, I couldn’t afford to help at that point so his credit is wrecked and nowhere will allow him to remortgage even with me on it. Since then my wage has improved and I could afford to take it all on. His new job won’t pay enough to catch up with his debts though and it’s really impacting him in terms of anxiety and not sleeping so selling the house seems to be the solution because he can then start again debt free. I don’t earn though to pay his debts and then take on the mortgage too and we’ve agreed I shouldn’t be paying the mortgage alone when it’s completely in his name.

OP posts:
BeeLady15 · 29/12/2021 13:44

Maybe take a step back and rent for a year or so, get things on an even keel. You sound panicked. It’s never a good idea doing these things in a panic. He can use the time to repair his credit rating. You can build up savings of your own. Then make an application in 12 months time.

PragmaticWench · 29/12/2021 13:48

Can you not buy the house from him?

Original poster
LoveGoldberg · 29/12/2021 17:18

I think anyone facing being homeless would be panicked.

We are renting for a few months, but I don’t want to be stuck renting. The money he is giving me is what he has deemed my share, the advice I am after is how to make the banks accept it as this is something that is proving an issue.

I love this house and don’t want to move because it is my home and I have put a lot of time and effort making it my dream home. It’s annoying because I can afford to buy it from him and I want to, but instead we will need to pay more money to move.

It won’t be simple to build up savings of my own while renting either, the rent around here is more than our mortgage.

OP posts:
NoSquirrels · 29/12/2021 17:24

He pays all the rent and bills (from the savings he’d give you) and you save up what you need independently, so the deposit is all provably yours?

Floralnomad · 29/12/2021 17:31

How much is the money he will be giving you / the deposit required ? Do you have a relative who could loan you the amount then you can return it to them .

KickAssAngel · 29/12/2021 17:37

Have you spoken to any debt charities to make sure that this is the best option? Moving house costs money, so selling, renting, then buying, is a really expensive way to fix this.

You are both right that you paying the mortgage when your name isn't on the deeds is risky, but you sound like a long-term, committed couple. Can you find a way for you to pay the mortgage, he consolidates other debts and starts paying them off, then re-think in 6 months?

Kite22 · 29/12/2021 17:55

I am a bit confused.
If he "is selling" then why are you already renting ?
The timeline is a bit muddled.
Have you / has he actually spoken to his current lender and shown them the evidence of being able to afford it - with your improved income, and his job starting in February - and offered this as a solution ?
Debt charities?
A different broker?

Eminybob · 29/12/2021 18:14

Have you tried a transfer of equity to add you to the existing mortgage?

Original poster
LoveGoldberg · 29/12/2021 18:47

We aren’t already renting! When the house sells we will rent for a few months while we fix the deposit issue. We’ve tried a couple of brokers already, one that specialises in concessionary purchases too but the issue is my partner remaining in the property and providing the deposit.

OP posts:
oviraptor21 · 29/12/2021 20:08

Has your DP had debt advice? His situation sounds quite complicated and he could be missing some possible solutions.
There are various debt charities that give free advice and work out debt management plans etc.
Is the house already sold?

Original poster
LoveGoldberg · 29/12/2021 20:36

No not sold yet, only going up for sale this week. The mortgage is just too much for him, he can’t remortgage because of his credit rating and he has an unmanageable amount of debt. I can afford the mortgage though but it just doesn’t seem possible however I just don’t have the deposit, it doesn’t seem to be accepted by banks that I can just take his deposit though.

OP posts:
BeeLady15 · 30/12/2021 12:28

It seems the problem is that they don’t accept the lump sum is a gift and they see it as your partners attempt to “buy” an equitable interest in the house you will buy this making it more difficult for them to repossess if you fall in to arrears or alternatively they see it as a loan which you will be repaying to him and that impacts the affordability aspect. Could you suggest that he signs a statutory declaration that the lump sum is a gift, it does not buy him an interest in any house you may buy and is not a loan that requires repayment?

Yuledo · 30/12/2021 12:32

Can a relative loan you the money (obviously saying it’s a gift) then pay them back once it’s all gone through?

MolkosTeenageAngst · 30/12/2021 12:35

Can your partner transfer the money to a close relative and then have the close relative ‘gift’ the money to you?

titchy · 30/12/2021 12:35

How has he got money for a deposit? Why isn't he using that to pay down some of his debts and pay the mortgage for two months till he starts his new job? Confused

oviraptor21 · 30/12/2021 13:26

Can you not say 'proceeds from the sale of my previous home', given that you lived in and invested in this property?

oviraptor21 · 30/12/2021 13:28

@titchy I think the deposit will be coming from the house sale which will also pay off debts?
Then OP and DP downsize?
Thats my understanding although I agree it is somewhat confusing!

AndSoFinally · 30/12/2021 13:37

They'll only ask for three months bank statements. If the money has been there all along and not suddenly appeared at month 2, then it's yours. No one asked me where the money in my accounts came from

bowlingalleyblues · 30/12/2021 13:46

Could you pay the mortgage (without remortgaging) and have a deed done to give you a % ownership of the property? Or lend him the money to pay the mortgage and arrears but put a charge on the property? Basically stay in the property but avoid remortgaging. I guess the mortgage company might not permit this, but it wouldn’t involve either of you applying for credit.

Eminybob · 31/12/2021 13:34

@AndSoFinally

They'll only ask for three months bank statements. If the money has been there all along and not suddenly appeared at month 2, then it's yours. No one asked me where the money in my accounts came from
Depends which bank you go to. The last place I worked, they wouldn’t have asked, just would have wanted to see a recent statement. Mycurrent place would most definitely question it regardless if they can’t see built up and the amount is out of line with what you would have been likely to save on your earnings.
Qwertykeys · 02/01/2022 18:21

Have you spoke to the current mortgage company and told them you will start paying in full and have a plan to pay arrears