Gifted Mortgage Deposit

spunkyfirework

Hello
We are currently purchasing a property for £130000, I have £10000 for the deposit and my mother gave me £3000 which she is not expecting back and which I am already in receipt of.
When I mentioned this to our solicitor it was mentioned that they will need notify the lender, write to my mother who will need to sign an insolvency declaration all for the £150.00 plus VAT.
May I ask if there is any way to avoid this fee? Will it make any difference that I already have the money? I don't want to land myself in any bother - are there any legal ramifications? I would much rather not pay the solicitors even more money! Please help, David

getmore4less

Should have kept your mouth shut no one would have noticed an extra £3k in the savings account that was there before you decided to buy .

£3k is the standard annual no IHT gift.

I think the solicitor it trying it on.

GMS

Lender should be informed but it won't be an issue.

Get a letter from your mother stating that the £3000 is a non refundable gift and that she will have no interest in the property. This will be enough for the vast majority of lenders.

If solicitor insists on £150 change solicitors.

FinAdv

Its no big deal to have £3000 in your account. You dont have to notify your lender of the gift deposit. There is no IHT on it.

I agree with GMS that you should change your solicitor if he insists on £150.

GMS

Its no big deal to have £3000 in your account but if the lender is unaware of a gifted deposit no matter how small then there is a chance of issues further down the line.

Better to disclose it. Won't be an issue. Often there is a condition for solicitors to confirm deposit from applicants own resources. If it is not then completion can be held up.

spunkyfirework

Many thanks for the help everyone, I feel empowered to change solicitor if the extra fee is insisted upon. The fee as well as stamp duty would surely send me over the edge! David