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Thomas
Thomas, Solicitor
Category: Property Law
Satisfied Customers: 7724
Experience:  UK solicitor holding an England and Wales practising Certificate.
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We have gifted our daughter £250,000 for a deposit for a

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We have gifted our daughter £250,000 for a deposit for a property. The lender (Nationwide) asked us to fill in a gift form. We want to,put a charge on this amount only to be paid back if the property is sold. Is this possible to do retrospectively and also would this charge protect the amount against any future creditors.

Hi,

Thanks for your question.

Did the gift form effectively confirm that your transfer of monies was a gift and not a form of loan?

Has the purchase completed already? if not, what stage has it reached?

Kind regards

Tom

Customer: replied 5 months ago.
we had to sign a gift form but the print at the bottom of the form said if the gift is for a family member a charge or trust can be put on the amount as long as no interest is charged and only repaid if the house is sold. No she has not moved in yet
Customer: replied 5 months ago.
Please could you answer online

Hi

Thanks for your question. I will try to help.

You are much better off sorting this out before exchange of contract or completion.

There will be a mortgage condition in your daughter’s mortgage stating that no second charges shall be granted without their consent. So, you need to be sure that you will have their consent to your second charge before the matter exchanges.

This means that you should attempt to get nationwide to agree for a second charge to be granted to you, so that it ranks after their first charge. Provided that the second charge in your favour simply requires that the original sum is repaid upon sale but only after their first legal charge has been paid then they are likely to agree but it’s going to take a few days to sort out.

I would suggest that you get your daughter or her solicitor to speak with nationwide to see if they would be agreeable in principle to this and then take it from there. You should conisder have a charge drafted in your favour by a solicitor that you yourselves instruct so that you can be assured that the monies will be repaid. Nationwide will likely need to see this charge once in order to sign off on it.

My goal is to provide you with a good service. If you feel you have received anything less, please reply back. Please remember to leave positive feedback using the stars at the top of the page.

Kind regards,

Tom|

Customer: replied 5 months ago.
Thank you. Please could you tell me when this second charge is in place it will protect the amount from any creditors or debts in the future?

Hi,

It will not protect it against the debt owed to nationwide under the mortgage.

However, if properly drafted then it would protect it against other creditors who would seek to claim against the property, because you would be paid after Nationwide upon sale and then the other creditors would be paid after you

Please remember to leave positive feedback using the stars at the top of the page.

Kind regards,

Tom|

Customer: replied 5 months ago.
Thank you we just need to secure our investment. We asked Nationwide and they said it could be done retrospectively. This was a general question to our local Nationwide branch.
Customer: replied 5 months ago.
Thank you we just need to secure our investment. We asked Nationwide and they said it could be done retrospectively. This was a general question to our local Nationwide branch. M

Hi,

I would still consider doing this before exchange in order to be sure, or at least have it acknowledged in writing at the very least

Please remember to leave positive feedback using the stars at the top of the page.

Kind regards,

Tom

Customer: replied 5 months ago.
Thank you

Hi

Please remember to leave feedback using the stars at the top of the page.

Tom

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