Confirmation of mortgage

SlowInWater

Been asked to get a parent to complete this after getting a present from them. Just wondering if anyone has experience of this? ,
particularly if this is just a document confriming that my parents have no right on the house or is it putting their house at risk if any trouble with my mortgage payments?

I ask as last page, in relation to the spouse, has a line in it:
'5. I understand that my family home is at risk and the secured party may repossess and sell my family home if payment due to secured party not kept up...'


Whose house is this in relation to, mine, or my parents?

Jane1012

Family home would refer to the home you are purchasing.

The cert is just so that your parents (or whoever gives you a gift) does not claim any entitlement to the property

SlowInWater

thanks, had a panic attack that I was signing parents up for something they hadn't been told about!

SlowInWater

actually, does anyone know which spouse completes last page of the form, the spouse of the person giving the money?, or spouse of person receiving the money?

Thanks

Thestones

So you received cash gift from parents? I did from my dad also and he had to fill in form confirming he has no rights to property being purchased, it's purely to protect the bank. My solicitor told me the reason this was brought in was because there were cases where mortgages were being defaulted but parents who helped finance were able to to successfully go against the bank and claim on the property.

Prismatic

My solicitor received this form with the mortgage pack from the bank. Solicitor said that it needs to be signed in front of another solicitor (parents need legal advice before signing).

Called the bank branch and the person on the phone said we just need the gift letter but her answer didn't sound very confident. Not sure she even understood what I was talking about.

Why would the bank send the form if they didn't need it? Do the underwriters send the pack to the solicitor or is the the staff in the branch?

I don't want a last minute hold up waiting on this if it is indeed needed to allow drawdown.

Thestones

Prismatic wrote: »

My solicitor received this form with the mortgage pack from the bank. Solicitor said that it needs to be signed in front of another solicitor (parents need legal advice before signing).

Called the bank branch and the person on the phone said we just need the gift letter but her answer didn't sound very confident. Not sure she even understood what I was talking about.

Why would the bank send the form if they didn't need it? Do the underwriters send the pack to the solicitor or is the the staff in the branch?

I don't want a last minute hold up waiting on this if it is indeed needed to allow drawdown.

We had exact same thing, it's not staff in branch, it comes from wherever mortgage pack comes from. It will be needed for drawdown. Yes your parents need to do it in front of different to solicitor to you.

apeking

Hi

Did you end up getting the consent of spouse to confirmation form signed as well? Point 5 on the form doesn't make sense, why would the spouses family home be at risk if payments are not kept up to date by mortgagor.

Did you get independent legal advice? Seems like a lot of hoops for parents to go through

flanders2006

Prismatic wrote: »

My solicitor received this form with the mortgage pack from the bank. Solicitor said that it needs to be signed in front of another solicitor (parents need legal advice before signing).

Called the bank branch and the person on the phone said we just need the gift letter but her answer didn't sound very confident. Not sure she even understood what I was talking about.

Why would the bank send the form if they didn't need it? Do the underwriters send the pack to the solicitor or is the the staff in the branch?

I don't want a last minute hold up waiting on this if it is indeed needed to allow drawdown.

Depending on the amount "gifted" you may not need to get another solicitor involved. I think if it is over €20k then they need to sign the form in front of a solicitor, if it is less then they just need to sign a form and give to your solicitor.

OscarBluth

We had issues with this. Parents signed standard gift letter but refused to sign the big form, as they didn't want to pay for legal advice and it was very complicated and as you say, they didn't feel they were entering into an agreement with the bank, we were.

It was fine. My understanding from our solicitor is those forms are usual in cases where there might be some kind of potential stake in the house - e.g if the money was given by a friend, so it looked v much like they had a claim they weren't acknowledging for the mortgage, or it was a loan from the parents.

It was in excess of 20k for us, and AIB were v happy with the standard gift letter - we have given x money to our son and it is a gift and we do not expect it back (generally its best if the money is given to the child, and not also the spouse for tax reasons: it doesn't matter if the child then uses the money to make a joint purchase with their spouse/partner as they still have an equal stake in the house regardless of who put more money in unless they draw up papers to say otherwise)

apeking

Here is the form
http://www.bpfi.ie/wp-content/uploads/2014/08/IBF-Confirmation-of-Mortgage-V1-0-2009.pdf

I have no problem with the first 3 pages and wouldn't need a solicitor for that but the last page doesn't make sense to me. Who is supposed to sign that page?

seamus

apeking wrote: »

Who is supposed to sign that page?

Item 2:

I am the lawful spouse of the Beneficiary (or of one of the persons comprising the Beneficiary)

It's part of the Family Home declaration. In effect it's to prevent a person from getting a mortgage on a property without the consent of their spouse.

Assuming this is a joint mortgage, then either person can sign the form. If it's sole mortgage to purchase a family home, then the other person (i.e. the one not named on the mortgage) needs to sign it.

apeking

Thanks Seamus. So page 4 has nothing to do with the gift received