Gifted deposits in the UK
In today's video, I would like to talk about gifted deposits in the UK.
A gifted deposit is the money a home buyer receives, usually from a family member, to contribute to some or all their house deposit.
The keyword here is gifted, so it's means the money is non-repayable.
Uk lenders prefer the gifted deposit to come from immediate family members rather than friends or distant family members.
The lender would conduct some further checks regarding the source of the gift, and is likely to insist on a gifted deposit letter from the donor, which confirms the nature of the relationship, the amount being gifted and confirmation that the gift is non-repayable.
The lenders will also insist on the proof of the funds, in the way of the bank statements and some identification from the donor.
If the deposit is being gifted from a parent or grandparents, then the gift will be classified as a potentially exempt transfer. This means that if the donor goes on to survive seven years after the gift is made, it will not be liable for potential inheritance tax.
That's what a gifted deposit entails in a nutshell. I hope you find this useful.
If you have any questions please feel free to get in touch with us at FT Rich Mummy financial services on phone number or visit www.ftrichmummy....
Thank you for watching, I'll see you in the next video.