How do we prove source of gifted deposit?

starfish2014

Hi all

We are in the process of applying for our first mortgage - received our AIP last week and are in the process of submitting full application via broker. Received a letter from solicitors requesting confirmation re. Deposit for money laundering purposes. My father in law is giving us the deposit in full. I have drafted a letter stating the money is a gift, not repayable and that he will hold no interest in the property etc etc. However the solicitors are asking for proof of the source of this money i.e. A bank statement showing regular savings, contribution from pension, inheritance etc. My father in law says he has accrued this money over many years and doesn't have proof of regular savings but that he has held this money for years. I'm guessing he has a fairly substantial bank balance but doesn't have any recent evidence as to he source - it has simply been built up over his working life (he's about to retire).

What evidence can we provide? Hope the above makes sense.

ExpertAdvice

His latest 3 months bank statements showing the balance to cover the gift deposit should be sufficient. He wouldn't be expected to produce past 20 years worth of bank statements showing the built of up savings.

ACG

Or maybe just a statement from 6 or 12 months ago to evidence he has had it a while?

Ask the lender.

I had one yesterday where the underwriter wanted further evidence of the deposit, asked what they wanted - job done.

Thrugelmir

ruby181 wrote: »

My father in law says he has accrued this money over many years and doesn't have proof of regular savings but that he has held this money for years.

Companies are obliged to send out annual statements. So he'll have evidence to substantiate this fact.

Kapaxiana

Our deposit was gifted. The money had been transfered to my account so all we had to provide was the letter from the benefactor and my bank statement showing available funds. We also paid a one one premium indemnity insurance over the gifted deposit as per lender requirements.
Lender's requirements vary though.

amnblog

Sounds like it is the solicitor, not the lender driving this.

Where lender asks for proof of funds with the gift letter, a single statement is usually sufficient.

Who is the lender?

starfish2014

Thanks, the lender is Leeds

amnblog

Leeds have a simple gifted deposit form to complete. The rest is down to the solicitor.