Gifted Deposits & The proof of etc

LTNRW

I am buying a property where a member of family have gifted me £21k as deposit.

My broker and solicitor now need proof of this.
however..

the family member is apprehensive about what the will need, this is without reason, as the funds are legitimate ( he sold a property )
he is concerned they will want to see that he isnt in debt himself and that they will want to see his general living expenses and incomes etc.
( again, nothing untowards, he is an honest man always worked & owned property , until recently where he has sold the property, hence being able to gift the deposit )

as far as I can see, all my solictor and lender will need are:

1. ID, drivers licence ( he has moved in with his mother temporarily as hes recently sold his house - so proof of address may be tricky at the mo )

2. bank statement to show the source of funds he is gifting , ie: June bank statement showing him receiving the house sale money

3. the gifted funds showing in my account.

4. declaration that the funds are gifted and not due to be repaid.


is this correct? just so I can alleviate his worries - even though they are unnecessary!

Thanks all!  

amnblog

Presumably, your Broker has furnished you with the Lender's gifted deposit form?

I/We confirm that the gifted deposit/equity to the above named applicant(s) towards the purchase of the property stated above is an unconditional and non-refundable gift and I/we will have no rights or interest in the property whatsoever. I/we intend to reside in the mortgaged property, I/we agree to sign The Mortgage Lender Limited’s Deed of Consent form (or, if the property is in Scotland, affidavit/consent if applicable) prior to the mortgage completing*. I/We understand the importance of seeking independent legal advice and have had the opportunity to do so. *The solicitor acting for The Mortgage Lender Limited will be responsible for obtaining the relevant Deed of consent/ affidavit form. I/We understand that my/our personal documentation provided to support this application will be held with all other information relating to this mortgage application. If the mortgage applicant(s) request a copy of their mortgage application file now or at any time in the future, the personal information I/we have provided may be included in the information that you may provide them. To make it harder for criminals to use stolen identities, to help protect you against fraud and to comply with anti-money laundering regulations, we need to verify your identity. We will attempt to establish identity using electronic verification checks, via a credit reference agency, however, we may need to contact you if further information is required. By signing the consent form, you authorise us to conduct such searches. The search we will carry out will have no impact on your credit score and will only be visible to you on your credit report.

LTNRW

they havent sent me a copy to be returned, they have however, requested the gifters bank statement showing the funds are available.

my conveyancer HAS given me a copy of the above to fill in.

user1977

LTNRW said:

he is concerned they will want to see that he isnt in debt himself and that they will want to see his general living expenses and incomes etc.

From where has he got the idea that this is at all likely, or would even be relevant? 

LTNRW

I honestly don't know. 

( although family think it may be work related, nothing illegal haha, but was part of high profile security detail for foreign diplomats.. and has thus alwyas been very secretive & cautious in general ) but I don't know..

I can't see either the lender or solicitors giving a hoot about anything other than is it legal?  what the source of funds is & proof of the funds being available..

MWT

user1977 said:

LTNRW said:

he is concerned they will want to see that he isnt in debt himself and that they will want to see his general living expenses and incomes etc.

From where has he got the idea that this is at all likely, or would even be relevant? 

Sounds like they are worried about IHT rather than the lenders requirements...

LTNRW

IHT?

is this even applicable? the gift is 20k
and the sale of the property was most certainly sub £300,000..  

MWT

LTNRW said:

IHT?

is this even applicable? the gift is 20k
and the sale of the property was most certainly sub £300,000..  

No, clearly not as the person is still alive... ...but the concerns they have are about information that would play a part in potential IHT calculations should they die within the next 7 years...

None of that is relevant to your lender though so their concerns about that are not going to be a problem for you now.

LTNRW

thought so! ha

they are due to visit tomorrow, so wanted to have all the info I can to help their concerns.

by the way, the list above.. is that all that will be needed or am I  missing something?

[Deleted User]

Thr only extra thing i could forsee being requested would be the completion statement from his sale to show where the money came from that entered his account 

Thrugelmir

LTNRW said:

IHT?

is this even applicable? the gift is 20k
and the sale of the property was most certainly sub £300,000..  

Under the Insolvency Act creditors have the right to reverse a transaction in order to obtain their money. In this instance they would have the rights to force the sale of the property and reclaim their £21k plus associated costs. If there's insufficient equity in the property then the mortgage lender bears the liability. 

People attempt all sorts of stunts when trying to keep money outside of somebody elses grasp.