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Gifted deposit or not?

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Comments

  • MWT
    MWT Posts: 10,397 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    Tax limits are of no relevance, your lender may have their limits on how large a part of the deposit can come from gifts but whatever part of the deposit a gift forms it still needs to be declared.
    Your solicitor will also need to know so they can complete their AML process and that may involve requesting proof of the source of the funds from the family member who gifted the money to you as well, so be prepared for that...
  • MWT said:
    Tax limits are of no relevance, your lender may have their limits on how large a part of the deposit can come from gifts but whatever part of the deposit a gift forms it still needs to be declared.
    Your solicitor will also need to know so they can complete their AML process and that may involve requesting proof of the source of the funds from the family member who gifted the money to you as well, so be prepared for that...
    That’s really helpful thank you. 
  • I have a similar query however the money that my parent is gifting me will be for my emergency fund and not for my house deposit. It will be kept in an account of mine separate from the accounts that contain the money I have saved that will go towards the house deposit. My question is, will this not be looked over by either the mortgage lender or solicitor? Reason being, my parent doesn't want their bank statements checked over. Thank you in advance for your advice!
  • csgohan4
    csgohan4 Posts: 10,600 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    I would declare it to your broker, lender and solicitor where applicable and ask. Solicitors have different money laundering requirements
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • Mojisola
    Mojisola Posts: 35,571 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I have a similar query however the money that my parent is gifting me will be for my emergency fund and not for my house deposit. It will be kept in an account of mine separate from the accounts that contain the money I have saved that will go towards the house deposit. My question is, will this not be looked over by either the mortgage lender or solicitor? Reason being, my parent doesn't want their bank statements checked over.
    Wouldn't it be easier to wait until you've bought the house and then transfer the money from your parent into your emergency fund account?

  • MWT
    MWT Posts: 10,397 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    Mojisola said:
    Wouldn't it be easier to wait until you've bought the house and then transfer the money from your parent into your emergency fund account?
    Exactly... if this is genuinely just to be an emergency fund and not needed during the house purchase process then don't take it until after the purchase is complete.


  • user1977
    user1977 Posts: 18,373 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
     the money that my parent is gifting me will be for my emergency fund and not for my house deposit. It will be kept in an account of mine separate from the accounts that contain the money I have saved that will go towards the house deposit. 
    If it's going directly into the other account then I don't see an issue. The solicitors will only be interested in the source of your deposit, so will only be looking at the account(s) where that has been, they're not looking at the rest of your finances. 
  • MWT
    MWT Posts: 10,397 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    user1977 said:
     the money that my parent is gifting me will be for my emergency fund and not for my house deposit. It will be kept in an account of mine separate from the accounts that contain the money I have saved that will go towards the house deposit. 
    If it's going directly into the other account then I don't see an issue. The solicitors will only be interested in the source of your deposit, so will only be looking at the account(s) where that has been, they're not looking at the rest of your finances. 

    As long as there aren't other transactions between the accounts that is true, but if there have been other recent significant movements between those accounts there is always a risk it might be looked at...
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