Charged for a gift letter

ma7986

Hello all,

we are a couple who decided to buy our first house.

We found a property where we made an offer that has been accepted so that we started all the paperwork both with broker and solicitors.

A part of the deposit comes by a gift from family and as normal the broker asked us for a gift letter saying that that money is a gift and that there is not any financial interest in the property. The letter has been made, signed by the member of the family who transferred us the money and gave to the broker who will forward that to the lender.

The problem is that now the solicitors contacted us saying that they want a gift letter too and that to prepare the extra documentation will charge us around 100£. We told them that we have already the letter that has been approved by the broker and that will be sent to the lender by him but they don’t want listen reasons. They said that they have to make also the interest of the lender.

This sounds very weird to us as we thought that if we pay them, they should make our interests and not the ones of the lender.

Anyone experienced the same thing/issue? This request of an additional gift letter is really necessary and legally required?

Thank you very much in advance for your help.

ACG

Never come across it before.
Sounds like your solicitor is trying to make a few extra quid.

Senior_Paper_Monitor

Name & shame ?


Frankly they are taking the P***.


I reckon 30% of the 200+ mortgages we process a year involve a parental gift and I have never known a conveyancing solicitor charge additional for processing.

stator

Ask the broker to contact the lender directly and find out if they are making it up. Sounds like a money making scheme to me!

Yorkie1

Is this a local high street solicitor, an online conveyancer, or what?

£100 is extortionate!

If you're quite near the start of the transaction you could always consider changing conveyancer if the broker's enquiries with the lender indicate the solicitor is trying it on.

amnblog

They are probably talking about a charge for a deed of gift indemnity insurance policy. Not to prepare a gift letter.

The indemnity policy protects the lender and is frequently requested.

Check with your solicitor.

kingstreet

I'm going to stick my neck out and suggest this is;-

an online conveyancing warehouse

and

a client where English isn't their first language.

Easy to screw for a few more quid. Especially on amn's indemnity insurance requirement.

Bet they are paying £75+ for completion of stamp duty land tax return, £120+ for acting for mortgage lender, a few daft fees for phone calls/filing and a fee of more than £600+ VAT to start.

Come on ma7986 name the firm and what were you actually quoted and the mortgage lender...

Thrugelmir

ma7986 wrote: »

We told them that we have already the letter that has been approved by the broker and that will be sent to the lender by him but they don’t want listen reasons. They said that they have to make also the interest of the lender.

The broker doesn't work for the lender isn't in a position to approve the letter. Why is the broker sending the letter directly to the lender.

ma7986

amnblog wrote: »

They are probably talking about a charge for a deed of gift indemnity insurance policy. Not to prepare a gift letter.

The indemnity policy protects the lender and is frequently requested.

Check with your solicitor.

Is the solicitor who is charging us the money. And they did not mention any deed of gift indemnity insurance policy, they just said that the donor have to sign a declaration and return to them.