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Ask Clare Your Own Question
Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 34233
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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ThereMe again!I just spoke to my mortgage advisor and

Customer Question

Hi There
Me again!
I just spoke to my mortgage advisor and they are advising that lenders wont lend to me if my parents gift me the money and then live in the house. The reason being that if they reside there it's not a true gift. So if I default and the house is sold they would have the right to first call on the proceeds of the house (over and above the lender). Does that ring true??
Submitted: 2 years ago.
Category: Law
Expert:  Clare replied 2 years ago.
Hi
Thank you for your question.
My name is ***** ***** I will do my best to help you
What percentage will the mortgage be as against the purchase price
Clare
Customer: replied 2 years ago.
50 percent
Expert:  Clare replied 2 years ago.
Hi
Is this a first level lender?
Clare
Customer: replied 2 years ago.
Yes
Expert:  Clare replied 2 years ago.
Hi
There should still be lenders who are willing to agree to this provided your parents have separate legal advice and are aware that their investment is at risk
They will be asked to sign a Deed of Postponement - but that is not unusual
Once the purchase has completed then you will sign a Declaration of Trust to protect their interest
Clare