Gifted deposit & solicitor

TLM_77

I may have got things a little confused myself.
Really, the money is my inheritance given early.

Yorkie1

TLM_77 wrote: »

I may have got things a little confused myself.
Really, the money is my inheritance given early. If I say its inheritance then this changes things doesnt it?
I know about mum having to live 7 years etc
Money is a gift to help me move house but mum said its inheritance given early.

No, it's still a gift rather than saved by yourself.

Thrugelmir

TLM_77 wrote: »

I will wait to hear from my broker as I've raised the deposit issue with him before. First time round, he was very unconcerned about Principality being bothered at all where the deposit came from as it was only going to be £50k cash and it would be put down as from savings and they wouldn't even ask for proof.

Change your broker. As plainly knows little outside of mortgages.

TLM_77

Broker has said he will speak to the lender tomorrow and find out what proof they will want in my case.
He said that typically, they only ask for bank statements etc to see where the money has come from.

TrickyDicky101

TLM_77 wrote: »

They may then ask for my mother to confirm that she deposited cash to me, but nothing more.
If this is the case, the solicitors should surely accept this from the lender, as pointed out by another poster, the solicitor is acting ON BEHALF of the lender.

As I understand it, the bank will want confirmation that your mother will not seek return of the money at some point (ie in the case it was a loan from your mother rather than a gift). Simply getting your mother to confirm she paid this amount to you - but mentioning nothing about its purpose - does not do this. I think your broker is incorrect.

TLM_77

TrickyDicky101 wrote: »

As I understand it, the bank will want confirmation that your mother will not seek return of the money at some point (ie in the case it was a loan from your mother rather than a gift). Simply getting your mother to confirm she paid this amount to you - but mentioning nothing about its purpose - does not do this. I think your broker is incorrect.

Ok, thanks

beecher2

Why would your mum confirm that she's given you 95k when that isn't the sum of the deposit?

this all seems a lot of work to avoid telling your mum about your debts.

daydreamweaver

TLM_77 wrote: »

This is true. But it's not every day you have to explain away £45k to someone...well, I've never done it before!

Just be honest with her. You had some financial issues you were embarrassed to admit to and you've used some of the money she gave you to clear the debts. As a result you're now in a much better position--not only have you got the mortgage and (hopefully soon!) the new house in which to raise her lovely grandchildren, but you don't have all that other stuff hanging around your neck. And that's all thanks to her generosity.

You'll probably have to follow it up with promises not to get into that kind of debt situation again--maybe even some specific examples of how you're going to avoid it, depending how money savvy she is--but while she may be shocked and disappointed, from what you've posted here it doesn't seem like the sort of thing she's going to disown you for.

Thrugelmir

TLM_77 wrote: »

I am a little concerned that it really is none of the solicitors business where my deposit came from as it is the lender that has the interest in it, not them.

You are totally missing the point I suspect. As the solicitors responsibilities encompass the Proceeds of Crime Act 2002, Terrorism Act 2000 and Money Laundering Regulations 2007.

Hence lenders will leave the matter in the hands of the solicitor who represents them not only you.

kingstreet

FWIW our deposit verification requirement is as onerous as most lenders'/solicitors'. Not only do we require a gifted deposit form/letter, we also ask for evidence of the gift leaving the donor's account in the form of a bank statement.