gifted deposit

dj.boz

As Gentoo as posted use his template for a letter, get the parents to sign it and that will be that.

We had to do the same as well. Our buyers pulled out but we managed to find another one, but they offered less. Father in law said he would gift us the difference.

If you get it all prepped and done then its nice, simple and stress free!

Dave_Ham

Whilst there is nothing for you to worry about here, as suggested a gifted deposit letter with suffice; you absolutely have to let the lender know now.

If you have as savings and the Solicitor checks the accounts or you declare at that point it is a gift, at worst you will have to await the application to be amended and an offer re-issued which could hold up your chain or worst still they could pull the mortgage offer although even at this stage I stress this is highly unlikely.

Get it right first time and this will be fine.

All the best

agonyjohn

Have spoke to mortgage team and have said everything you advised, just send in a letter to that affect and are happy, they said it infact makes it easier as they dont have to look at bank statements...

holly_hobby

agonyjohn wrote: »

Have spoke to mortgage team and have said everything you advised, just send in a letter to that affect and are happy, they said it infact makes it easier as they dont have to look at bank statements...

Thats great in respect of the mge lenders underwriting.

Hopefully your conveyencer won't ask for this in respect of their ML verification checks, which as I say have a different mandate.

Hope this helps

H x

agonyjohn

well we are happy to provide as much information as they need we havnt got anything to hide...

holly_hobby

Then you're all sorted !

Good luck in your new home

Holly x

agonyjohn

just to ask though as gossip at work hightens... do all solicitors check the source of deposit? ours isnt huge 36k on a 212500k house? just dont want anything to be slowed down

sparkstertom

As above - they might, or might not - the thing is to tell the truth if asked - you really can't kid these people. Providing the cash you have for your deposit is not from ill gotten gains, I would suggest you'll have no problems!

Tom

holly_hobby

agonyjohn wrote: »

just to ask though as gossip at work hightens... do all solicitors check the source of deposit? ours isnt huge 36k on a 212500k house? just dont want anything to be slowed down

If not from a simultaneous house sale, the source really must be verified under money laundering requirements.

Its not the solicitor being a pain, its his duty under ML regs.

If the funds have been recently deposited, then they may ask for sight of the original holding fund, or that of the donor (in the case of gifted deposits).

The objective of ML checks, is to establish that the funds are not cash sourced from non-traceable/illegal sources such as evidenced with criminal activity, so you can understand why the checks are there, esp for large sums of cash that may suddenly appear in someones account just prior to pch.

Your sol will explain if you ask.

Hope this helps

Holly x

dandyhighwayman

Can I jump in on this one?

I was given £5000 by my grandparents a few weeks ago to go towards my deposit. The convenyancers have asked for bank statements, naturally, and they have asked where the £5000 has come from. I've told them that it came from my grandparents, I've given them the letter assuring no interests in the house after the sale, etc.

Now they're asking for ID for my grandparents and charging me £125 'administration fees' to do various checks on them. Is this normal?