No Don that is absolutely NOT legal in anyway as Star would confirm as that is mortgage fraud
Sale price £180k
Deposit needed £18k
Mortgage needed £162k
Sollys/buyers negotiated price £170k with a 'gifted deposit' of £10k from vendor.
Seller accepts arrangement as do their sollys.
RICS confirms value at £180k
Buyer deposits £8k
Mortgage lender £162k agrees valuation and is aware of the 'gifted deposit' deal/arrangement.
Seller loses £10k and receives no more than the £170k less fees
The Land Registry will list the value at £180k
So do you see how it is possible to put down a smaller deposit legally on a higher value property rather than just negotiating a straight forward £10k reduction on the price and then subsequently having to still find a deposit of £17k.
Hope that helps
