Can I use part cash payment towards deposit?

AdrianC

The solicitor has to ensure that what you say is your deposit money really is your money or, if a gift, from who it's claimed to be from.
The money laundering regs are to prevent people turning up with a big pile of cash and saying "Oh, this? It's perfectly legit, honest."

So, with those two in mind, do you think there's a risk of a problem with rolling up with a large pile of £20s that your dad just happened to have tucked in a safe place?

G_M

Laughable really isn't it?

Us Joe Bloggs's struggling to comply with money laundering rules to justify a few thousand pounds going towards a home to live in or perhaps let out for a pension fund, while national presidents, oligarcks, the rich & famous channel billions of pounds around the world and invest in London mansions under company names avoiding stamp duty as well as money laundering checks............

missvp

AdrianC wrote: »

The solicitor has to ensure that what you say is your deposit money really is your money or, if a gift, from who it's claimed to be from.
The money laundering regs are to prevent people turning up with a big pile of cash and saying "Oh, this? It's perfectly legit, honest."

So, with those two in mind, do you think there's a risk of a problem with rolling up with a large pile of £20s that your dad just happened to have tucked in a safe place?

You make it sound like it isn't legit, and I'm not sure if you are implying that Im not, or presenting it as it would seem. My dad DOES have cash savings at home, and we are only using them, if we are able, because the lenders won't allow me to borrow enough (over a very minute detail my mortgage advisor didn't pick up on �� ). I have the option of trying another lender but there's nothing to say I'll be accepted and they could well only allow me to borrow the same amount, in which case I'm screwed again.

Had the money sat in his bank account for months or years this wouldn't even be a question the cash would be paid into a bank account prior but clearly they'll question the sudden injection of cash, and I understand that's with good reason, for money laundering and so on blah blah blah.

And yes it is laughable really. If I don't laugh I could cry, because after a !!!!!! break up, this house is to get me back on my feet again. So for the sake of a few grand which is perfectly available and legitimate, which may be disregarded and see everything fall flat

missvp

Having been awake all night, I have spoken with a close (affluent) uncle who has said if I am failing to get anywhere with cash savings from father, he would be prepared to gift me the money, with signed documentation re it being a gift and bank statements to prove source of funds (as has been done with dad's gift).

Are mortgage lenders likely to accept this, or if it's extended family, will they likely say no? I know it's a case of speaking to lender and solicitor but I'm pulling my hair out to have to wait until Monday again, because I am already a couple of weeks behind schedule. I just want to see light at the end of the tunnel for all of this!

AdrianC

missvp wrote: »

You make it sound like it isn't legit, and I'm not sure if you are implying that Im not, or presenting it as it would seem.

The point is that the money laundering regs, and your solicitor, have a specific job to do - and what you're presenting them with makes it impossible for them to do that job.

Had the money sat in his bank account for months or years this wouldn't even be a question

Indeed. But, with any large pile of cash that's got no trail behind it, it is quite simply impossible to prove that it isn't the proceeds of crime... whether that be drug money or a builder doing undeclared and vat-free cash jobs or...

bouicca21

When I gifted money to dd towards her deposit, all the solicitor wanted was a statement from me about origin of money and that it was a gift not a loan. They certainly didn't track back into my bank statements, so I would have thought that dad paying the cash into a bank and then transferring it to OP would work.

AdrianC

bouicca21 wrote: »

When I gifted money to dd towards her deposit, all the solicitor wanted was a statement from me about origin of money and that it was a gift not a loan. They certainly didn't track back into my bank statements, so I would have thought that dad paying the cash into a bank and then transferring it to OP would work.

How long ago was that? Money laundering requirements are constantly being strengthened - for obvious reasons.

theartfullodger

missvp wrote: »

...He has offered to gift me the additional 4k towards the deposit. However this is from cash savings he has at home and has saved up over many years......(

Clearly there is nothing directly unlawful about having such cash at home of giving some to a close family member. Very generous of him. And he's got more than £4k in cash at home now.

However it is most uncommon these days to keep such large amounts of savings gained over several years at home in cash: Why does he do this? I'm getting 6%+ at Zopa and 12% from SavingStream..
https://www.zopa.com
.
https://savingstream.co.uk/how-it-works
- sounds like he's missing out on opportunities..

Some might question if either...
a) there's an odd reason not to want records of such savings (apparently)
b) does he need some guidance in how to handle money (no offence, we can all do with the odd nudge to our betterment).

Before someone points out Zopa & Savingstream have risks (as do all investments.., yes even UK government ones.. ) would dad be covered by his insurers if there was a break in & the £4k+ was nicked??

Best regards to all

missvp

I don't know why he chooses to do so (although it's nothing illegitimate and more old schools of thought) - but he does. I didn't however come on here to draw any criticism or advice about what he does with his money- but I will pass on any advice re putting it into savings and so forth.

It reconfirms what I already knew anyway - that it's likely to draw concern due to money laundering.

To those suggesting source of funds and bank statements etc aren't traced back- they are, unfortunately for me. But I do understand why!

Where so I stand RE extended family (uncle) gifting me the additional money?

theartfullodger

Anyone (the Archbishop of Canterbury, some tramp on a park bench, a Russian oligarch ..) can gift you money,, ...entirely legitimately: It's the use of it to buy property meaning people will want info about it that matters...

I'd worry if my parents were doing this: But they can't, deceased, and me OaP....

Cheers!