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Jeremy Aldermartin
Jeremy Aldermartin, Solicitor
Category: Property Law
Satisfied Customers: 11893
Experience:  Dual qualified Solicitor and Attorney
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I receive a gift of money from my parent and would like to

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Hi I receive a gift of money from my parent and would like to use it to invest in a buy to let mortgage
JA: Because real estate law varies from place to place, can you tell me what location this is in?
Customer: oxfordshire, UK
JA: Has anything been filed or reported?
Customer: Nothing is filed or reported yet My husband and I will take the buy to let mortgage together and will use the money gift as deposit Is this possible to make a private agreement to say that in case we break up and need to sell the property, the deposit amount will go back to me and everything else is split 50/50 between us
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: Nothing else!

Your best bet is that the agreement is the deposit goes back to your parents, reason being that in the event of divorce it is more likely to be upheld because they are not party to the divorce and therefore the agreement should be upheld in their favour. They can gift the money back to you after the divorce if they want. Your best option is to obtain a deed of trust. This is a legally-binding document recording the financial arrangements between joint property owners, and/or anyone else with a financial interest in the property. The purpose of a Declaration of Trust is to remove any uncertainty as to what will happen to each person's financial investment in the property. What’s included in a Declaration of Trust will depend on your individual circumstances. It can include:

  • How much each person contributes to the deposit, and how much will be repaid to them
  • What percentage of the property each person will own, and how the money will be split if the property is sold
  • How much each person will pay towards the mortgage, and how the mortgage will ultimately be paid off

To get a deed of trust drawn up typically costs around £200. You can see a provider of such services offering a fixed fee price of £180 here:

I trust this assists 

Customer: replied 13 days ago.
My parents will not be involved in the buy to let mortgage nor their names can be on the property deed because they are foreigners (the bank wont lend to us if they are part of the mortgage application). Will this affect this Declaration of Trust?

No it is not a problem at all, indeed the deed of trust is used because they are not on the title to the property I trust this assists

Jeremy Aldermartin and 2 other Property Law Specialists are ready to help you
Customer: replied 13 days ago.
Thank you for answering! Super helpful

Happy to help take care