Gifted Deposit not from UK resident

LauBar

Hi there. Me and my Wife are currently in the process of buying our first home - or trying to anyway - and we have come up against a potential problem. Our deposit has been gifted from my Mother who lives abroad. I sent her the Gifted Deposit form and she very quickly emailed me back pointing out it stated on the form that Gifts will not be accepted from non UK residents. Now, the money is coming from a UK account (Nationwide) and said account is registered to a UK address. Nationwide are aware that my Mother lives abroad so there's nothing untoward there.

So, yes, technically, she's not a UK resident, but the money is coming from the UK. Are we likely to encounter a problem with this?

I've spoken to both our mortgage broker and our solicitor and neither of them were much help, both basically 'passing the buck' to the other party.

Any advice or previous experience most welcome as we are growing a bit concerned now.

Many thanks.

Lilla_D

Hi there, who's the lender you're using?

Most lenders have no problems with non-UK residents giving a gift even though in most cases it also means that the money is coming from abroad, which is also normally acceptable. Because of this, the underwriter normally also asks for bank statements showing the money on the foreign account and then that money is transferred to the UK and show proof of this. Have done it many times from Poland, India, US, etc., so it's not a show stopper as such. If your lender has a problem with a non-UK resident giving a gift, then you may have to use a different lender unless the broker can get an exception for you.

LauBar

Thanks for the reply. The lender is Leeds.

So even if Leeds are a no go its not the norm for the lender to not accept deposits from non UK residents? So finding another lender shouldn't be a problem?

Lilla_D

Yes, correct - it's not the norm. Finding another lender is down to your circumstances and the property you're buying, but it's quite rare that someone is limited to one lender only.

ThePants999

Lilla_D wrote: »

Hi there, who's the lender you're using?

Most lenders have no problems with non-UK residents giving a gift even though in most cases it also means that the money is coming from abroad, which is also normally acceptable. Because of this, the underwriter normally also asks for bank statements showing the money on the foreign account and then that money is transferred to the UK and show proof of this. Have done it many times from Poland, India, US, etc., so it's not a show stopper as such. If your lender has a problem with a non-UK resident giving a gift, then you may have to use a different lender unless the broker can get an exception for you.

Lilla - I'm a little late, but I just want to say "welcome to the forum". I've seen a number of your posts over the last month or so, and they've been - without exception - helpful, accurate and clear. This is a better place now you've arrived!

amnblog

Leeds BS are quite clear on this on the form.


(Please be advised that Gifted Deposits are not acceptable from Non UK Residents)


A mistake by the Broker who should have picked this up or checked it before application. LBS are the wrong lender for you I'm afraid.

SHM87

I am in same situation, application seems to be progressing through OK with Natwest, solicitors and Natwest both aware and no issues so far.

amnblog

SHM87 wrote: »

I am in same situation, application seems to be progressing through OK with Natwest, solicitors and Natwest both aware and no issues so far.

Because Nat West do not have a problem with gifts from outside the UK.


Good work from your Broker.