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As you will be financing your purchase by way of a Mortgage, your Mortgage Lender will insist on receiving a letter signed by your Mother to say the £25,000 is a gift.
I do not know of any Lenders who would agree to proceed with the grant of a Mortgage under any other basis, I'm afraid.
Therefore if you proceed, it will have to be on this basis as your Lender will not agree to allow the property to be subject to any form of Trust in favour of a third party.
I hope this assists and sets out the legal position.
Thanks Al, appreciate your answer.
The answer was as expected, I just now need to relay this back to my brother who insists it wouldn't be required.
So what you're saying basically is that as long as my Mum states the 25k is a gift, in theory, mortgage lenders would look at this in a more favourable manner.
Thanks for your reply. You are correct- as long as your Mother signs a letter to say it is a gift, the Lender will be happy to proceed. However, if your Soicitor gets wind of the fact that there is an element of a loan involved, he would have to report matters to your Lender which would then jeopardise your Mortgage!