Solicitors asking bank are they happy with gifted deposit? after offer issued already

dannyp86

Hi, been trying to get contracts exchanged, but all i seem to get is the solicitors dragging their feet. it's like they don't want me to have the house, or it just feels that was because i'm anxious :huh:
The latest one is they are asking the lender if they are happy with part of the deposit coming as a gift from my wife (she's not on the mortgage). The bank were made aware of this gift with a signed letter from her plus proof of funds from her account during the mortgage application. Which since they have agreed to offer the mortgage. The solicitor claim it is a duty of care by them to the lender. Well why didn't they perform their duty of care 2-3 weeks ago when they received their copy of the mortgage offer? sorry if this just seems a bit of a rant but it's well and truly doing me head in :wall:
Is this a common step in the buying process?

Funny_old_game

You really need to start worrying, especially if shes going to live there.

Well done solicitor, remember they act on behalf of you and the lender.

ACG

Its not uncommon for solicitors to check with lenders (badly timed in this instance).

Gifted deposit in the main is fine.
However, I dont know of any lender who would accept a deposit from your partners parents if she is not on the mortgage.

Just to clarify, im not saying it is not acceptable but I would love to see you come back on here and say it was fine (and who the lender was)... Im not so sure you will though.

Thrugelmir

dannyp86 wrote: »

The solicitor claim it is a duty of care by them to the lender.

Standard procedure by the solicitor. As part of the work they undertake. A necessary precaution so they are in no way at fault so to speak. The solicitor has no idea what was said between you and the lender either. Many people will try and lie at this stage in order to get round the rules.

Funny_old_game

The issue is with the solicitor not the lender so aim your enquiries at them. As mentioned, badly timed.

Also they may not know the application conversation, so possibly no redress.

davidmcn

Funny_old_game wrote: »

Also they may not know the application conversation

Indeed, unless the instructions they've received mention a gifted deposit (and I know they don't always) they will have to go back and check, as the default instruction is to query any deposits from third parties.

Thrugelmir

Funny_old_game wrote: »

The issue is with the solicitor not the lender so aim your enquiries at them. As mentioned, badly timed.

Lender relies on the solicitor to verify the source of the deposit if nothing else than to comply with money laundering purposes. The solicitor is duty bound to report back if the deposit is provided by a party not named on the mortgage. All of this takes place post mortgage offer.

If the lender was ok initially. Then there shouldn't be an issue.

dannyp86

ACG wrote: »

Its not uncommon for solicitors to check with lenders (badly timed in this instance).

Gifted deposit in the main is fine.
However, I dont know of any lender who would accept a deposit from your partners parents if she is not on the mortgage.

Just to clarify, im not saying it is not acceptable but I would love to see you come back on here and say it was fine (and who the lender was)... Im not so sure you will though.

in no part of my post did i claim the gift was from my wife's parents. It was from herself.
The solicitor claimed it to be standard procedure and not to worry (as Thrugelmir says), but just want get done and dusted now.

ACG

Sorry misread, I think I had 2 posts open at the same time.

Who is the lender? I cant see that being accepted at all.
The reason being is any gift has to be without reservation, obviously that isnt the case as she will be expecting to live in the property.

ethank

What has probably happened is that you file has been run by a junior conveyancer. Before they exchange it will go to a partner to be signed off for exchange, and the partner recognises that the document is missing so they send a letter to the lender at the last minute.

kingstreet

A gift from your wife who will be resident in the property?

This will have legal implications. Expect additional scrutiny from lender.

FWIW it's often pointless submitting such documentation with the mortgage application as the lender delegates responsibility for such issues to its/your solicitor.

If this had been my case, I would have discussed it with lender and solicitor prior to submission to ensure it was acceptable.