I am in the process of selling my house & buying another one, but I need a top up of £50,000. I have contacted 'Stonehaven' that deal with Equity Release & was in the process of proceeding with Equity Release, but their Redemption Fees are sky high if I wanted to leave. So my daughhter said she would try & get a mortgage. She already has a mortgage so the mortgage broker said the only way she could have anothe mortgage was a 'Buy-to-Let' mortgage, which was fine, BUT the mortgage company now want a letter from me signing all the proceeds from the sale of my house which will amount to about £165,000, GIFTING to my daughter, meaning she will be the sole owner of the house which I want to purchase. Its not that I dont trust my daughter BUT if she were to marry in the future & then get a divorce (I know I am looking ahead now but I need to look at all angles) her husband would be able to then claim half the house & I would be left with nothing!! I have been in a situation before with 'gifting away' as when I was married (now divorced) I had land which I kept my daughters ponies on & my husband when we divorced gifted the land to his sons so I lost everything. Is there some way/documentation that can be done if I were to go ahead with this gifting away that will protect me from losing the proceeds of the sale of my house. I have spoken to several Financial Advisors & my Solicitor which is dealing with the sale of my house & they have not come up with an anwser & I am going round & round in circles & not getting any clear help. I am getting desperate as to which way to go 'Equity Realease (which I really dont want to do) or go ahead with the mortgage & gifting my house away!!! Tel. XXXXX XXXXXX Margaret XXXXX
Thank you for your question here on Just answer. It is my pleasure to try and assist you with this today. Please bear with me if I need to ask for any further information from you in order for me to be able to advise you fully. My name isXXXXX and I am a practising solicitor. I have been an expert on this website in UK law since 2008. During that time, as you appreciate, I have answered thousands of questions from satisfied users on a variety of subjects. Because we are all in practice with clients and court and other users, I might not always respond in minutes, particularly evenings and weekends. Please bear with me in that case. I will be online and off-line all day most weekdays and weekends.
Do you have a specific question?
I havent had an answer, but you say our chat has ended????
I haven't answered yet because I am not altogether certain whatthe problem is.
It appears that you are selling one house and buying another butneed more money and you are not able to get a mortgage.
Your daughter is therefore going to get a mortgage on theproperty for you and let it out to you but what the lender is asking for is foryou to give your daughter the substantial deposit and then the property will bein her whole name.
Is that the scenario? If so, it is quite normal. It may not beacceptable to you but it is normal. It might be possible for your daughter tobe a guarantor on your mortgage but very few lenders now will accept aguarantor.
If you are particularly concerned about your daughter goingbankrupt or getting divorced and she owns the house, why don't you simply buy acheaper house where you don't need to borrow money off your daughter?
Assuming that that is not an option for whatever reason, there isno reason why there cannot be a deed of trust in respect of the house where sheholds £165,000 of the sale proceeds on trust for you. The solicitor dealingwith the purchase can easily do that for another couple of hundred pounds.
Does that answer the question? Can I assistfurther or answer any specific queries?
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The reason I am buying that particular house is because it has some land & stables which is what my daughter wants, so I didnt need for you to tell me to get a cheaper house!!!!
I am still not clear what the problem is with your daughter having the house if it is being bought for your daughter.
I have told you how to deal with it by way of a separate deed of trust
can I assist further?