Do I need to Provide my own Deposit?

flugelhorn_2

I am currently in the process of buying a second home. Mortgage has been agreed and everything has gone relatively smoothly.

I just recieved the contract from my solicitor to sign and they have asked for proof of funds to counter any money laundering and to show that I have to money for the deposit. My parents are providing around 15% of the deposit. Is this going to be a problem? I will have to provide a statement of my savings to the solicitor and this will show that a cheque was payed into my account for £xx a few days ago.

There was no mention of where my deposit had to come from from my mortgage provider so I never thought that it was going to be an issue.

Thrugelmir

What "proof" have has your solicitor requested?

herbiesjp

The lender will probably want a letter stating the money is a gift, they will not require repaying, and that they will not have a charge on the property.

pararct

If the funds are gifted are there then not IHT and CGT complications?

Henry_P_Chester

pararct wrote: »

If the funds are gifted are there then not IHT and CGT complications?

No CGT. But you will have to pay IHT if the gifter dies within 7 years.

opinions4u

Henry_P_Chester wrote: »

No CGT. But you will have to pay IHT if the gifter dies within 7 years.

The estate of the deceased would actually be liable for the IHT, not the recipient of the gift.