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Hello and thank you for your question. My name is ***** ***** I will be very pleased to assist you. I'm a practising lawyer in England with over 15 years’ experience. Please be aware that although I will endeavour to reply to you promptly, I am also in full time private practice and so I may not be available to respond immediately and it may also take me a few minutes to prepare a reply. The site will notify you as soon as I respond. I look forward to working with you to answer your question fully.
Thank you. because a mortgage is involved, there is no option other than your parents to make an absolute gift of the monies in question to you because the lender will not accept anything else. This decision will be presented to you by the lender as a take it or leave it option and therefore the only option available to your parents other than the making of an absolute gift will be not to proceed.
However, once the transaction has been completed, it is open to you and your parents to retain a different solicitor that that acted in the mortgage ( the reason for this is the original solicitor would be under a duty to report any developments to the lender) to prepare a declaration of trust. This is a legal document setting out that whilst you will remain the legal owner of the property which will be a requirement of the lender, the equity is split as between you and your parents in defined shares.
This will require an element of trust on the part of your parents because it would be open to you to simply decline to enter into a declaration of trust after completing the transaction because a gift is a gift ( which is above will be a requirement of the mortgage lender). If your parents are willing to trust that you will honour the terms of the above in good faith then the above is the way families will typically get around lender's requirements in this respect. If your parents are not willing to trust that you will do as above, then they will need to consider an alternative investment which does not involve the mortgage
typically costs in respect of the above arrangement would be in the order of between £400 and £650 plus VAT. If you require any assistance with the drawing such a deed up post completion you are welcome to revert to me as an alternative
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