- Equity Gifts
- Cash Gifts
- Builder Gifts
- Landlord Gifts
- to 95% Loan to Value
- Common Sense Decisions
- Non Family Members Considered
Mortgages with Gifted Deposit
We are often asked by clients whether we can help them arrange a mortgage if all or part of their deposit is gifted to allow them to purchase a property. This is sometimes also called a Concessionary purchase or Concessionary Sale.
This may be necessary, for instance, if parents wish to give a cash gift to children to help them purchase a property. Alternatively, if parents own a property they may wish to gift equity in the property to children to allow them to purchase it from them.
The gift could either be in the form of cash – termed a “Cash Gift”. Alternatively, the gift could be in the form of equity in the property that is being purchased- termed an “Equity Gift”.
The gift could also come from or be given to a Limited Company, Partnership or Trust.Read More >>
Where there is an element of gift/concessionary purchase the lender will normally want a letter from the giftor confirming:
- Whether the gift is a Cash Gift or Equity Gift
- The relationship between the individual giving the gift and the mortgage applicant(s)
- Confirmation that the gift is outright
- Confirmation that the gift is not repayable
- Confirmation that the giftor will have no ongoing interest in the property
Although the criteria above generally has to be met, we may also able to assist where the gift has to be repaid, there is no relationship between the giftor and giftee and/or the giftor will have an ongoing interest in the property.
At RockHopper we can look to assist clients arrange a mortgage where there is a gift involved.
We appreciate everyone’s particular situation is unique, which is why we look at every enquiry on a case by case basis.
If you would like to see whether we can help, do get in touch for a free no obligation quotation.