Gifted deposit/ Solicitor's money laundering check

EllenaW

I would like to buy a house with a deposit, which is gifted by a friend.

When is the solicitor undertaking his money laundering checks?Before the exchange of contract? After the exchange of contract?

My worry is, that my solicitor asks for bank statements as a proof of the funds after I have send him the money and after he has exchanged the contracts - and that I then can not meet the completion day, because further information or documents are required after the exchange of contracts.

Is it unlikely that the solicitor exchanges contracts without having undertaken the necessary money laundering checks before? Is it likely that he asks for bank statements after the exchange of contracts?

What are the necessary checks? Is a letter confirming the money is a gift all he wants? Does he want to see the money sitting in an account? Does he want to see bank statements showing the money going into the account? Does he want to see the last 10 months bank statements of the donator?

GMS

Lender unlikely to accept a gift from a friend as deposit.


Before you do anything check with your lender or you will be wasting time and money.

EllenaW

The lender is ok with it.

amnblog

EllenaW wrote: »

The lender is ok with it.

Who told you this Ellena?

Thrugelmir

EllenaW wrote: »

The lender is ok with it.

Solicitor performs the checks.

Solicitor will need to be satisfied before exchange takes place.

amnblog

Thrugelmir wrote: »

Solicitor performs the checks.

Lender makes the decision.

TBagpuss

The duty to consider money laundering is an ongoing one, so in some cases, if new information comes to light, then further checks might happen at any point.

The solicitor has to checks to satisfy their own internal checks, and then they will need also to report to the lender who may have their own criteria and could require additional checks.

The best thing you can do is make sure that the solicitor is aware at the very start , when you first instruct them, where the money is coming from and on what basis. Include imforantion as to what relationship the person gifting the money has to you, whether they are intesned to have any interest in the property, whether there is any plan for you to repay any of the money etc.

If you know, also explain where the money is coming from - has the person giving it to you had an inheritance, sold a property, or are they just providing it from savings?

If you have had specific confirmation from your lender that they are happy to make you a mortgage offer based on a gifted deposit try tp get that in writing. Are you sure that they are happy with your specific plans, and not simply that they do no have a blanket ban on any gifted deposits?

Thrugelmir

amnblog wrote: »

Lender makes the decision.

Given the fines imposed these days for non compliance. Internal policy will be very defined. As to what is or isn't acceptable. Won't be left to an individual to make a decision.

Mini25

We've just had to provide proof of bank statements of we're the money is and a trace on it for the last 3 months.

ollie2008uk

Had same sinereo lender will not accept it. Has to be a close relative

JIL

I gave my son and his partner £2500 towards a house deposit as did his partners parents. Thought it was very straightforward until the solicitors would not act for them as there was no proof from us that the money had been in our bank account for 3 months.
It has now been sorted and contracts have been exchanged but it is just an example of a relatively small amount and the ongoing checks.