Proof of savings - money given as a gift

d4084558

Me and my girlfriend are currently in the process of buying our first house, and our solicitors have asked for proof of how we acquired our savings. Most of mine came as a gift from my mum when she sold our old family house. The money currently sits with me, and has done for the past 6 months or so, so when the time comes to hand it over, it'll be coming from me, not my mum.

Does anyone know what proof I can give? I've read I could supply a signed letter from my mum, stating that the money was a gift and she has no interest/stake in the house we're buying, will that do?

Thanks for any help!

foxy-stoat

d4084558 wrote: »

Does anyone know what proof I can give? I've read I could supply a signed letter from my mum, stating that the money was a gift and she has no interest/stake in the house we're buying, will that do?

Yes, thats probably what they will want.

Car1980

Yep, that's all they need.

It's only to cover the solicitor under money laundering regs.

mije1983

Car1980 wrote: »

Yep, that's all they need.

It's only to cover the solicitor under money laundering regs.

If a mortgage is involved, it will also probably be required by the lender.

d4084558

Thanks all - hopefully will be fairly straight forward then!

agrinnall

Rather than rely on responses from strangers on the internet (even though what's been said is probably correct) why don't you just ask the people who you are paying to provide you with legal advice and get the definitive answer?

mangog

Your solicitor will probably have a template you can use, to make life easier, or your lender may have a standard form if you're getting a mortgage. We used the gift declaration form required by Nationwide and just sent a copy to our solicitor.

kingstreet

agrinnall wrote: »

Rather than rely on responses from strangers on the internet (even though what's been said is probably correct) why don't you just ask the people who you are paying to provide you with legal advice and get the definitive answer?

Absolutely.

Solicitors and lenders often have pre-printed forms or letter templates which have to be adhered to exactly.

Don't make up your own as you'll simply end up doing it twice, or more...

kingstreet

Here's the kind of wording several lenders have adopted over the last year or two;-

Santander UK Ltd
Bridle Road
Bootle
L30 4GB

Dear Sirs,


Re: AAxxxxxxx – X Xxxxxx & X X Xxxxxx - Purchasing X Xxxxxxx Close, Xxxxxxx, DE11 XXX - Currently Residing at 43 Xxxxxxxxx Way, Xxxxxxx. LE67 XXX.

We confirm that we are gifting the sum of £11,700 to our granddaughter Xxxxxx in respect of the purchase of the above property. We also confirm that this gift is non-refundable and non-interest bearing and we will not retain any interest in the property whatsoever.

The gift is from our savings.


Yours faithfully

steampowered

The letter is there to satisfy the lender wanting to know that your mum has no interest in the property.

Your solicitor may also want your mum to provide evidence of how she came across the money. To prove that it is legitimate money and is not the result of criminal activity.

HampshireH

Having just been through this process the person who gifted us money also had to prove where they got it from and bank statements etc to show an accumalation.

We werent prepared for this. Our conveyence solicitors were very thorough it would seem . Most examples I saw online stated signed declaration but didn't mention that person providing months of bank statements etc too