Please help deed of waiver

Hi we have been approved for a Mortgage. My parents are giving us a gift deposit of 20000.

We have been sent a deed of waiver form from the Halifax for my parents to sign, to say they are giving the money as a gift.

But it also says on the form

We hereby Consent to security being given to you over the Property by way of a continuing security for all the liabilities of the Borrowers present or future......bla bla bla.

Now if I'm not mistaken does this not mean that they will be held responible if we don't keep up repayments. ie guarantors.

This was never a condition of the loan. We never said we had guarantors.

My parents are both retired.

I'm getting very worried now. Please advise

Thanks

Re: Please help deed of waiver???????

Sounds like the wording of a letter of guarantee. Would advise you contact your lender/broker to have this rectified.

Re: Please help deed of waiver???????

Funny enough I checked the letter from the underwriter and it says that they require

Deed of Confirmation and Postponement to be completed in relation to the parental
gift of € 20k.

Have we been given the wrong form. And can anyone explain what the above is.

Thanks in advance​

Re: Please help deed of waiver???????

Hi Gers,

I recently went sale agreed and some of my deposit was a gift from my parents. When the loan offer was sent out there was a waiver form. When i read it I thought the same as you that my parents would be responsible for any debts/liabilities that I had. I showed the letter to my solicitor, who advised that the jargon on the letter means basically that your parents have no interest in the property. My solicitor advised me to get my parents to go to their solicitor ( in my case my solicitor is not my parents). My parents went to their solicitor, who advise as above that the jargon means that your parents are solely giving you a gift and have no interest/right to the property. Show the form to your solicitor.

Re: Please help deed of waiver???????

Deed of Confirmation is usually required when there is a third party interest in the property. The lender requires the third party to sign it to waive their interest in favour of the lender. This ensures the lenders security on the property. This is signed in the presence of a solicitor to ensure that the third party has taken independent legal advice.

It is possible that some lenders use the Deed of Confirmation in lieu of a gift letter (which yours suggests) but I would suggest you clarify this with your lender and/or solicitor.