Declaring 'gift' for deposit - hidden costs??

MrsManda

goteamliz wrote: »

****Update****
3.I will require copies of
a.the account passbooks, or
b.the bank statements where such funds have been and are

If the funds are not being obtained from your own accounts, then a Statutory Declaration from the account(s) holder(s) setting out and enclosing the above must be supplied and supporting identity documentation from them. The declaration must also contain the following information:

Ok, I can see why the solicitor wants proof that the money is yours and not a loan from anyone else. We didn't have this as a problem because the funds were being obtained from our own accounts because my OH's parents transferred the money into our account to go with the rest of our deposit.

Yorkie1

My parents transferred money directly to my solicitor to save time going through me, but they didn't need a Stat Dec.

Either your solicitor is covering their back to an extent not considered necessary by other solicitors, or your particular lender requires it.

surreybased

Solicitors do receive mortgage instructions from your bank so perhaps this is what is driving the request. Your mortgage offer letter will be different to what the solicitor receives as it may stipulate requirements. I would just check with the bank directly and then you know for sure.

tryfive

goteamliz wrote: »

If the funds are not being obtained from your own accounts, then a Statutory Declaration from the account(s) holder(s) setting out and enclosing the above must be supplied and supporting identity documentation from them. The declaration must also contain the following information:
-Their relationship to you
-An explanation of why they are financing your purchase
-That the monies are a gift
-That they have no financial interest in the property you are purchasing
-That they are solvent and are not subject to any bankruptcy proceedings

Either:

1) Get your parents to transfer the gift money to your account - and avoid the above completely, or:

2) Get your parents to write a letter to you with the above information.

Simple!

No reason to pay a money-grabbing solicitor!

Soot2006

We had a gift of a good deal more than £20k and solicitor simply asked us whether parents would have interest in house, we said no, he said fine -- I think the solicitor needs to be certain that nothing dodgy is going on or something. Our solicitor knows my OH's boss and knows that our parents have legit money and knows that we're from the type of families where it's fairly normal to pass money down the line, so he was happy that his obligations that nothing dodgy was going on and that no one would be hammering at the door for repayment were satisfied and left it at that. If he'd had any doubts, then I'm sure he would have wanted to chase things up a bit more. That said, we did also have the money transferred into my account a month before completion.

missbrayble

Hi everyone,

I'm in the same situation - we are buying a house and our parents have given us a gift of money for the deposit. Even though the money is already in our accounts, the solicitor says they still need the letter because they need to trace the money back 6 months.

Because they charge a lot for the letter, I have written it myself. When I sent it to the solicitor they said

"The contents of the letter is fine but it does need to be in the form of a statutory declaration quoting the relevant Acts of insolvency and with the correct attestation clause for the solicitor to complete."

Can anyone help me out with what the relevant Acts and correct attestation are?

Thanks