ID check expenses for conveyancing

db1133

Hi!
I'm buying my first house and am now in the process of sorting out the conveyancing stuff. The money that I am using to buy the house is being lent to me from a number of different people in my family. The conveyancing company needs to do ID checks on everyone that has gifted me money for money laundering purposes. The costs are set at £95 per person, which means that for the 5 people that are lending me money it'll cost about £500! I was wondering is it legal for me to get everyone to send the money to my father and to get him to send me the money, therefore meaning that the money will only come from him and I will only need to get an ID check on him? Any help would be great. All the money is legal and am only trying to save money on checks that are necessary, but very costly!

ACG

Is there a Mortgage involved?

Edi81

Are they lending you or gifting you the deposit.
This is very important if there is a mortgage involved.

ACG

Edi81 wrote: »

Are they lending you or gifting you the deposit.
This is very important if there is a mortgage involved.

It is being lent.

The money that I am using to buy the house is being lent to me from a number of different people in my family.

The costs are set at £95 per person, which means that for the 5 people that are lending me money it'll cost about £500!

db1133

So there is no mortgage involved at this stage (we are buying in cash). However, I will then remortgage to get the money to pay them back

ACG

db1133 wrote: »

So there is no mortgage involved at this stage (we are buying in cash). However, I will then remortgage to get the money to pay them back

If thats the case then it is the solicitors requirement (rather than the lenders). Have you asked them whether you can do what you are proposing?

If not, I would suggest speaking to other solicitors rather than trying to be clever. If the solicitors ask for bank statements then it could all become a problem down the line.

Edi81

I see that but the op also refers to gifting.

Perhaps op needs to learn the difference between a loan and a gift and use clear explanations.

steampowered

They will look at where the money came from, e.g. from bank statements.

If you gave them your father's bank statements with 4 massive unexplained transfers they will ask where the money came from, so you are back to square one.

MarcoM

i find this an infringement of the OP's civil liberties.

db1133

@Edi81 sorry I didn't realise that it was important to make it clear whether it is a loan or a gift.

@MarcoM could you explain what you mean?

davidmcn

ACG wrote: »

If thats the case then it is the solicitors requirement (rather than the lenders). Have you asked them whether you can do what you are proposing?

They can't, because what the solicitors are doing is primarily driven by anti-money-laundering regulations (which apply to any money passing through their hands), and checking the source of funds would include checking where dad got the money from, which brings you back to square one.

If not, I would suggest speaking to other solicitors rather than trying to be clever.

I would suggest speaking to other solicitors who aren't going to charge an extortionate amount simply for doing the AML checks (or seeing whether the current ones are prepared to be flexible with their fees).