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A Gift of Equity Letter for Mortgage is essential when a property owner wishes to sell their property to a family member at a price below market value, effectively 'gifting' them a portion of the property's equity. This document, commonly used in England and Wales, provides mortgage lenders with the necessary assurance that the reduced purchase price represents a genuine gift rather than a loan requiring repayment. The letter includes crucial details such as the property's market value, the amount of equity being gifted, the relationship between parties, and confirmation that the gift is unconditional. It helps satisfy both legal requirements and lender criteria while protecting all parties involved in the transaction.
