Letter template for cash gift from parents

Dxy01

Hi, I'm new to this but need advice. My parents have given me and my brother a substantial cash gift. I will be putting mine towards a house purchase along with funds from the sale of my own house and also my savings (no mortgage). I am looking for a template/wording for a letter that can be signed by my parents to say that it is a gift and they don't want repaying - any pointers?
PS I'm aware of the Inheritance Tax implications.

Mojisola

The lender will probably have their own form that your parents will need to fill in - that's what happened when we gave our son money towards a mortgage.

AskAsk

Mojisola said:

The lender will probably have their own form that your parents will need to fill in - that's what happened when we gave our son money towards a mortgage.

i helped a friend apply for a mortgage last year and the lender, santander, just needed a letter.

OP - you could just draft a simple letter like this

State Address
State email
State phone number
State date of letter


To whom it may concern

I, (state full name and DOB), confirm that I have given my daughter, (state full name and DOB), £xxxx as a gift as of DD/MM/YYYY.

Yours faithfully

(Signature)

(State full name and title)

Keep_pedalling

Mojisola said:

The lender will probably have their own form that your parents will need to fill in - that's what happened when we gave our son money towards a mortgage.

Certainly Nationwide do, I had to fill one in for my daughter. I would not worry about it until you get to the stage of applying for a mortgage.

northwalesd

Mojisola said:

The lender will probably have their own form that your parents will need to fill in - that's what happened when we gave our son money towards a mortgage.

There isn't going to be a lender. Presumably they need to provide proof to the estate agent and solictors that the money they are using to purchase the new house isn't 'laundered'.

Dxy01 said:

I will be putting mine towards a house purchase along with funds from the sale of my own house and also my savings (no mortgage).

@Dxy01 - the format suggested by @AskAsk looks reasonable.

74jax

If there is no lender, I'd ask the solicitors advice. If you state a gift and doesn't need repaying it could then count as being 100% your child's if a relationship breaks down (if buying with someone else).

Keep_pedalling

northwalesd said:

Mojisola said:

The lender will probably have their own form that your parents will need to fill in - that's what happened when we gave our son money towards a mortgage.

There isn't going to be a lender. Presumably they need to provide proof to the estate agent and solictors that the money they are using to purchase the new house isn't 'laundered'.

Dxy01 said:

I will be putting mine towards a house purchase along with funds from the sale of my own house and also my savings (no mortgage).

@Dxy01 - the format suggested by @AskAsk looks reasonable.

The conveyancing solicitor will ask for proof of where the money came from. We recently had to show the source of a large sum of money we gave to our daughter 3 years ago, that she only just used for a house move. A mortgage was required in that case but because she had the money for several years her mortgage company needed nothing from us, but the solicitor did. 

AskAsk

Keep_pedalling said:

northwalesd said:

Mojisola said:

The lender will probably have their own form that your parents will need to fill in - that's what happened when we gave our son money towards a mortgage.

There isn't going to be a lender. Presumably they need to provide proof to the estate agent and solictors that the money they are using to purchase the new house isn't 'laundered'.

Dxy01 said:

I will be putting mine towards a house purchase along with funds from the sale of my own house and also my savings (no mortgage).

@Dxy01 - the format suggested by @AskAsk looks reasonable.

The conveyancing solicitor will ask for proof of where the money came from. We recently had to show the source of a large sum of money we gave to our daughter 3 years ago, that she only just used for a house move. A mortgage was required in that case but because she had the money for several years her mortgage company needed nothing from us, but the solicitor did. 

it depends on the solicitors.  some are very pedantic and will ask for proof while others won't.  i think most will though as they are meant to for money laundering.

Dxy01

Thanks to everyone who replied. I'm going to go with the letter suggested by @AskAsk. 

MaiTai

It certainly is not a case of solicitors being pedantic,it is a legal requirement to comply with the anti-money laundering regulations.

Please do not use the template suggested above as it quite frankly is not worth the paper written on.Several key points are missing.

You need to give your solicitor your parents details and they will be contacted to provide the information required to comply with the regulations.

Typically this will include:-
 a gifted deposit letter/form to be completed and returned
Certified copies of ID and proof of address 
Proof of source of funds and a solid paper trail supporting this