Excessive level of info required from solicitor re gifted deposit

nik_k

My wife and I are in the initial stages of house buying, and am currently at the point of having had instructed a solicitor to handle the conveyancing. All the paperwork has been submitted to them, but it's all a bit complicated by the fact that our deposit is comprised of a couple of different sources...

1) Inheritance received
2) Gift from my Mum

My Mum has completed a gifted deposit declaration, stating that she is gifting this amount from her savings. However, the solicitor is now asking her to provide...

a) ID documents
b) Her bank statement showing the transfer to our savings account

It's easy enough, and understandable, for her to provide a copy of her passport. However, in terms of the bank statement showing the transfer, the solicitor has elaborated and said that this must be a full statement showing accrual of the funds (i.e. salary in) and then the subsequent transfer to us.

It seems excessive to ask what the source of her savings is. Does this seem correct to you folk? Effectively they are asking what the source of the source of part of our deposit is. Will they then want to go another step back and ask what the source of the source of the souce is?

Would it be acceptable to just say that the source of her savings is a period of her having saved money? Does she really have to show where her savings originated from?

Thanks in advance for any advice offered!

maas

Your 'word' is not usually enough, they need to see evidence. Just a saving statement should be sufficient. It does not need to go back to when she was born or anything.

If they are suspicious, or the amount is high, they may ask for further statements showing a build up of funds, or history of balance.

nik_k

maas wrote: »

Your 'word' is not usually enough, they need to see evidence. Just a saving statement should be sufficient. It does not need to go back to when she was born or anything.

If they are suspicious, or the amount is high, they may ask for further statements showing a build up of funds, or history of balance.

The gift is £4k, so, from what they’ve said, the statement would need to show income to her savings account of at least £4k. That then dictates how far back the statement needs to go, which could be months or years. Seems kinda ridiculous to me.

davidmcn

All perfectly normal and necessary. Solicitor needs to verify that it is actually mum's money, not funds channelled via her account from another party.

nik_k

davidmcn wrote: »

All perfectly normal and necessary. Solicitor needs to verify that it is actually mum's money, not funds channelled via her account from another party.

Hmmm, still seems like a big ask to obtain a statement or statements covering the gradual acquisition of funds into a savings account. But if them’s the rules, them’s the rules I guess!

hazyjo

Money laundering regs have REALLY tightened up in recent years. Way of the world now sadly - so much fraud out there.

nik_k

hazyjo wrote: »

Money laundering regs have REALLY tightened up in recent years. Way of the world now sadly - so much fraud out there.

How sad it’s come to this...the minority ruining it for the majority, se usual!

Fosterdog

nik_k wrote: »

How sad it’s come to this...the minority ruining it for the majority, se usual!

How is it ruining it for you? It is just providing a bit of extra information, it's not hurting anybody or a cause for any stress or concern unless you or your mum actually have something to hide.

If you had saved the deposit yourself you would have to provide exactly the same information showing the money trail.

I guess your other option would be to decline your mothers generous gifted deposit and save your own.

steampowered

Basic verification of the source of funds is very standard. Your mum just needs to provide e.g. proof of getting paid salary to build up the payments.

The solicitor needs to know where the funds came from to be sure it doesn't come from the proceeds of crime.

Norman_Castle

Ask the solicitor if a statement for the account holding the funds for the last 6 months is sufficient.

davidmcn

Norman_Castle wrote: »

Ask the solicitor if a statement for the account holding the funds for the last 6 months is sufficient.

I suspect something like that (or even less) is what they're actually after, and would be adequate evidence that the money is really hers. If the savings were accruing by £1 a month that doesn't mean they'd need 4000 months of statements.