How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Buachaill Your Own Question
Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10536
Experience:  Barrister 17 years experience
53108719
Type Your Law Question Here...
Buachaill is online now

Can a occupier of a property not named on the mortgage

Customer Question

Hi,
can a occupier of a property not named on the mortgage gift some mortgage deposit money e.g brother?
Submitted: 1 year ago.
Category: Law
Customer: replied 1 year ago.
(Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  Buachaill replied 1 year ago.
1. There is nothing to prevent an occupier of a property not named on the mortgage from gifting some mortgage deposit money to the person taking out the mortgage, such as his brother. This is perfectly acceptable in law and does not have any tax consequences, provided the person taking out the mortgage lives for seven years after the gift. In general, in England, gifts are not taxed. The occupier can continue to live in the premises under whatever agreement he reaches with his brother or mortgage holder. This is a perfectly acceptable arrangement. However, different issues would arise if the occupier wishes to obtain a property interest in the property if the money were not a gift.
Expert:  Buachaill replied 1 year ago.
2. Please RATE the Answer as unless you RATE the Answer your Expert receives none of the money you have paid the website so there is no incentive to answer any further questions
Buachaill and other Law Specialists are ready to help you
Customer: replied 1 year ago.
My solicitors have said to me there may be an issue with this as some banks accept and some dont, just worried if this effects the mortgage offer.
Expert:  Buachaill replied 1 year ago.
3. What the bank is concerned with is whether the person taking out the mortgage can afford to pay back the mortgage. Accordingly, there is no problem if the money is a gift because it means the borrower does not have to pay it back. However, if it wasn't a gift, there might be a problem. Banks are generally concerned if their borrower has another sum to pay back in addition to the mortgage amount.
Customer: replied 1 year ago.
they are hesitating to accept my brothers deposit gift as he is currently living in the property even though he has signed an occupancy waiver form and written a letter that he will have no interest in the property, just concerned that if this will any how effect the mortgage offer if they do not accept his gift, what are the chances??
however i have told them that he will be moving out by end of completion date because that will be the case as he will be moving to live with his girlfriend just thought that i should put his name on the form as he is currently in the property for now.
is this going to cause any sort of complications?any advice will be appreciated.Regards,
Expert:  Buachaill replied 1 year ago.
4. I would not have put your brother's name on the application form if he is not going to be repaying the mortgage. Otherwise, you are making him liable for the repayments as well. You are better off apply on your own merits with the benefit of the gift. Accordingly, if this bank turns you down, you should apply on your own merits to a different bank. That would be a much better approach.