Proof of funds for House purchase

Nikolay

Hi,

Me and my partner are currently buying a house in England and quite a large part of our deposit is coming from my Mom who is living in Russia. She has already transfered the money to my account, but what we haven't realised is that she took the money out of her safe deposit box, which means that there is no statement to prove this money origin. My mom has just retired a year ago, and until that point her salary was paid in cash (Usual for Russia) thus while she can show statements from her bank accounst and prove (using a document called "Employment Book") that she has been working in the position where she could earn this money she does not have a history of regular deposits in her accounts.

Just a brief recourse. - Since a lot of russians lost lots of money in the banks during Soviet Union Collapse most of people do not trust banks and keep money at home. Small companies pay salaries in cash and most of people probably (I haven't been for a while) still don't have debit/credit cards.

Can you please advise what can she use as a proof of funds. The solicitors seem to be taking time and are barely contactable so I am hoping getting as musc as possible paperwork early on now will allow us to complete with the purchase sooner rather than later.

Hope all this makes sense.

princeofpounds

I don't think proof of funds is an issue, I think you are talking about anti-money laundering regulations and source of funds yes?

It should not be impossible to demonstrate, but it will be harder because any solicitor will need to demonstrate they have done due diligence on you.

Independent professional verifications can help, so if there is an accountant or lawyer at her old firm prepared to verify the document, or a notary, that might be of assistance. Any other contracts of employment are also useful, as well as a written explanation with some rough sums explaining how such an amount could credibly have been saved.

Through all this, the test is one of consistency i.e. she should have about as much money as is consistent with who she is and what she has been doing, and preferably with some evidence to back it all up. You don't need a total audit of the situation, just enough to demonstrate that there is nothing unusual about the situation.

Unfortunately with the money coming from Russia in cash you set yourselves a higher bar, but I would have thought that with documentation you would be ok.

They will also be concerned that she can prove she is who she says she is, so photo ID is necessary.

You might not need all these things, but just a couple of ideas.

Nikolay

Thank you for you comments, it kind of putting my mind at peace. You are right it is not really a proof of funds but origin of funds. So far solicitors have requested Certified copy of the passport, and transaction details i.e. sent receipt and receive receipt from the banks which isn't an issues. Fingers crossed they will be satisfied cannot afford to see house purchase falling through!