Family gift paid in cash - how to evidence this to conveyancer?

user1977

george4064 said:

user1977 said:

george4064 said:

A proper signed letter will be fine, there should be plenty of templates widely available online.

Do you mean about declaring it to be a gift, or evidencing the source of the cash? The latter is unlikely to be adequately covered by a letter.

for proof of source of funds check with solicitor you’re dealing with no what their requirements are. Usually an account statement confirming the balance with the account holders name/address will suffice.

Yes, it might suffice if it had been a transfer from their bank account - but unfortunately that's not what we're talking about.

Slithery

george4064 said:

user1977 said:

george4064 said:

A proper signed letter will be fine, there should be plenty of templates widely available online.

Do you mean about declaring it to be a gift, or evidencing the source of the cash? The latter is unlikely to be adequately covered by a letter.

To prove it’s a gift, for proof of source of funds check with solicitor you’re dealing with no what their requirements are. Usually an account statement confirming the balance with the account holders name/address will suffice.

Did you actually read the OP?
I've never been able to find an account statement for the money I have stashed underneath my mattress ...

HampshireH

Could you not use this to pay your solicitor fees instead rather than your savings?

Presumably you have more in the bank than just the deposit (for fees and any emergency)

That way it's not an issue

Slithery

HampshireH said:

Could you not use this to pay your solicitor fees instead rather than your savings?

Wouldn't the solicitor have to subject the funds for their fees to the same anti money laundering regulations as everything else?

HampshireH

When I paid my fees I paid by card. Same as I would for any online transaction.

No one asked for evidence of where the payment came from (unlike the deposit)

Slithery said:

HampshireH said:

Could you not use this to pay your solicitor fees instead rather than your savings?

Wouldn't the solicitor have to subject the funds for their fees to the same anti money laundering regulations as everything else?

user1977

Slithery said:

HampshireH said:

Could you not use this to pay your solicitor fees instead rather than your savings?

Wouldn't the solicitor have to subject the funds for their fees to the same anti money laundering regulations as everything else?

Strictly speaking no, but some firms will apply the same test to all incoming funds.

Though the even simpler suggestion would be to use it for other costs associated with the move rather than send it to the solicitors at all.

jazzyja

I received a gift from my mum....I had to send her bank statements for the 3 months prior to the deposit being available. Solicitor basically wanted to see how it got there. Luckily she had just been saving each month. It was basically how I had to prove my deposit too. 

user1977

jazzyja said:

I received a gift from my mum....I had to send her bank statements for the 3 months prior to the deposit being available. Solicitor basically wanted to see how it got there. Luckily she had just been saving each month. It was basically how I had to prove my deposit too. 

Yes, though again it's more straightforward when the money has been in a bank account and not under a mattress...

jazzyja

user1977 said:

jazzyja said:

I received a gift from my mum....I had to send her bank statements for the 3 months prior to the deposit being available. Solicitor basically wanted to see how it got there. Luckily she had just been saving each month. It was basically how I had to prove my deposit too. 

Yes, though again it's more straightforward when the money has been in a bank account and not under a mattress...

I know. That's why I thought I'd reply just to clarify what they actually wanted, not just a letter. 

BikingBud

TheJackah said:

So, we're in a situation that doesn't appear like a normal 'gift deposit' situation.

Our mortgage is £95k minus a £4750 deposit = £90,250. We're paying the deposit out of our savings, no problem.
On top, we're paying an additional £5k to make the difference between mortgage valuation and property purchase price, £5k. £3k of this has been paid by a family member, in cash, out of funds they held in cash, and paid into our account. So there's not technically anyway we can think of evidencing this. At the same time, it isn't a gift 'deposit', as it is not for the deposit, it is to make up the remainder of the purchase price, it has nothing to do with the mortgage.

What are our options in this scenario? Do we declare it as a gift or as our savings? And if as a gift, how would we evidence it?

So the house price is £100K?

You are getting a mortgage for £90,250?

I read this as you need evidence to satisfy anti-money laundering checks to account for £9750.