Proof of money source needed - solicitor?

tek-monkey

tek-monkey

wanna see my snake?
My OH has some money that needs to be gone before brexit destroys it's value, and as we still plan on staying in the UK for now we've decided to put it on my mortgage. If this is sensible or not only time will tell, but it's not doing anything in the bank.

I can drop 20% on without a fee, so we're doing that. What I want is a way to have proof she gave it to me, so that if it all goes tits up she has some assurance that I owe her. So, how is the best way to do this?
 
staffordjas

staffordjas

Well-Known Forumite
Don't know the answer to your question. But do know we had to jump through hoops to 'gift' son a big sum towards his house deposit. Wanted proof of how long It had been in my bank account, where I'd got it from ( inheritance from my parents ). Proof my parents had it in their account etc etc.
Luckily , Lloyds Bank were the administrators for my parents estate and had all the legal & appropriate paperwork.
We had to sign to say we had no interest in his house though .
 
tek-monkey

tek-monkey

wanna see my snake?
staffordjas said:
Don't know the answer to your question. But do know we had to jump through hoops to 'gift' son a big sum towards his house deposit. Wanted proof of how long It had been in my bank account, where I'd got it from ( inheritance from my parents ). Proof my parents had it in their account etc etc.
Luckily , Lloyds Bank were the administrators for my parents estate and had all the legal & appropriate paperwork.
We had to sign to say we had no interest in his house though .
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That doesn't sound like fun! My mortgage provider just wanted it to be from a bank account in my name, as I'm the only one on the mortgage. I said it was my OHs money and that she'd moved in, he didn't mention a problem. I just wanted her to have some reassurance as she's not on the paperwork for the mortgage itself, and due to earnings difference putting her on it could cause issues.
 
staffordjas

staffordjas

Well-Known Forumite
rudie111 said:
Do you not have to pay tax on 'gifts' over a certain amount?
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Lucy said:
Only if you die within 7 years of giving the gift.
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Trying not to pop my clogs for another 5+ years yet :D

( Had to do it as a ' gift' , as opposed to ' giving it to him towards the deposit ' as apparently he wouldn't have got his mortgage on the basis that he might have been expected to pay me back as well as affording his mortgage payments).
 
Carole

Carole

Well-Known Forumite
You’ll definitely need to see a solicitor for this @tek-monkey to put something in writing.
For example what if she needed the money urgently, how would that be accessed?
How much would her share be worth in 5 years time for example if she wanted out? Her share would have to be a proportion of the house value now.

Another option is to see a recommended financial advisor to suggest other investments.
You obviously haven’t mentioned an amount, but does she have any Isas? That could be an idea.

You’re absolutely right that her money isn’t doing anything in the bank, but it’s not going to do anything paying off your mortgage either unless she has a financial interest in the property.
 
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tek-monkey

tek-monkey

wanna see my snake?
Carole said:
You’ll definitely need to see a solicitor for this @tek-monkey to put something in writing.
For example what if she needed the money urgently, how would that be accessed?
How much would her share be worth in 5 years time for example if she wanted out? Her share would have to be a proportion of the house value now.

Another option is to see a recommended financial advisor to suggest other investments.
You obviously haven’t mentioned an amount, but does she have any Isas? That could be an idea.

You’re absolutely right that her money isn’t doing anything in the bank, but it’s not going to do anything paying off your mortgage either unless she has a financial interest in the property.
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The vague plan was we work out what % of the current value her money was, and my equity was. We have that written into an agreement and any equity afterwards is half each, as she'll be paying towards it too. I very roughly have about 30% equity, her money going in now would give her about 15%, and between us we should get the lot cleared in maybe 10 years all going well.

I mean, I don't plan on splitting up, but after a few goes at this it makes sense to know where you stand!
 
tek-monkey

tek-monkey

wanna see my snake?
Tilly said:
There's no guarantee of course that property prices will continue to rise

Or wages for that matter

Or that employment laws will exist in the same way
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It was a serious consideration if we should just get her money out of the uk ASAP and see what happens, buying into the house could be a big risk but while we're here we need somewhere to live so....
 
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