PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

Proof of funds for gifted stamp duty money?

I’m in the middle of buying a property and have saved up all the deposit myself. My mum kindly offered to give me some money to cover the stamp duty and has already sent me this money from overseas. I do need it as my savings is just enough to cover the deposit.

My solicitor asked for a number of documents as proof of funds which my mum prepared, translated and sent over last November. She then went quiet on this despite my many follow-up emails (she said she needed my mum to sign a gift letter but never provided a template). 

Two weeks ago I was told that she just left the firm! Her temporary cover looked at the my file, spoke to her manager and told me that because this money is for stamp duty only, it’s not considered a gift and therefore doesn’t require any proof of funds. 

Then last week a third solicitor took over my file officially and when I spoke to her over the phone, she agreed that it’s not a gift in this case. But a couple of days later, she emailed me to say that although it’s not a gift, it “must be dealt with as if it is a gift”. She asked for pretty much all documents to be provided again because she needs them to be up to date, and £180 plus VAT upfront payment to “deal with a gift”.

I’ve already replied and asked her politely to first speak to her colleague and possibly that manager. Do you think proof of funds is required in my case? And if so, is this new solicitor reasonable to ask me to gather everything all over again?
«134

Comments

  • Money is fungible. How do you separate those funds that are for the purchase price and those funds that are for taxes? Guess they sit in the same account. I think the argument that "this money is for taxes" doesnt work. its part of the total funds that you need and they are partially gifted to you.

  • user1977
    user1977 Posts: 17,308 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    edited 3 February 2022 at 9:51PM
    It's a standard requirement by lenders that the purchase price comes from the borrowers' own funds (or is otherwise approved as a gift) - it's not standard for them to care who pays the stamp duty. So I suspect the gift letter is an over the top requirement dreamt up by the solicitor.

    Going through the usual checks for source of funds is a more justifiable request.
  • TBG01
    TBG01 Posts: 494 Forumite
    Fourth Anniversary 100 Posts Name Dropper
    user1977 said:
     So I suspect the gift letter is an over the top requirement dreamt up by the solicitor.
    It's not. It's another safe measure to protect the client incase the gift is ever disputed. 


  • user1977
    user1977 Posts: 17,308 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    TBG01 said:
    user1977 said:
     So I suspect the gift letter is an over the top requirement dreamt up by the solicitor.
    It's not. It's another safe measure to protect the client incase the gift is ever disputed. 
    In which case the client can turn down the kind offer of the additional advice.
  • Snookie12cat
    Snookie12cat Posts: 805 Forumite
    500 Posts Third Anniversary Name Dropper
    edited 3 February 2022 at 10:26PM
    ce5656 said:
    I’m in the middle of buying a property and have saved up all the deposit myself. My mum kindly offered to give me some money to cover the stamp duty and has already sent me this money from overseas. I do need it as my savings is just enough to cover the deposit.

    My solicitor asked for a number of documents as proof of funds which my mum prepared, translated and sent over last November. She then went quiet on this despite my many follow-up emails (she said she needed my mum to sign a gift letter but never provided a template). 

    Two weeks ago I was told that she just left the firm! Her temporary cover looked at the my file, spoke to her manager and told me that because this money is for stamp duty only, it’s not considered a gift and therefore doesn’t require any proof of funds. 

    Then last week a third solicitor took over my file officially and when I spoke to her over the phone, she agreed that it’s not a gift in this case. But a couple of days later, she emailed me to say that although it’s not a gift, it “must be dealt with as if it is a gift”. She asked for pretty much all documents to be provided again because she needs them to be up to date, and £180 plus VAT upfront payment to “deal with a gift”.

    I’ve already replied and asked her politely to first speak to her colleague and possibly that manager. Do you think proof of funds is required in my case? And if so, is this new solicitor reasonable to ask me to gather everything all over again?
    With solicitors they need to prove all money going through them is traceable and therefore it needs to be treated as a gift and they will change you for this. The mortgage company won't care, but for money laundering reasons solicitors will not accept money they have not verified it's source. And they will charge you for the time spent to do this.

    You can ask to file and pay the stamp duty yourself so it doesn't need to go through them but my solicitor refused my request to do this. 
  • Slithery
    Slithery Posts: 6,046 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    You can ask to file and pay the stamp duty yourself so it doesn't need to go through them
    Not if you need a mortgage.

  • user1977
    user1977 Posts: 17,308 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    ce5656 said:
    I’m in the middle of buying a property and have saved up all the deposit myself. My mum kindly offered to give me some money to cover the stamp duty and has already sent me this money from overseas. I do need it as my savings is just enough to cover the deposit.

    My solicitor asked for a number of documents as proof of funds which my mum prepared, translated and sent over last November. She then went quiet on this despite my many follow-up emails (she said she needed my mum to sign a gift letter but never provided a template). 

    Two weeks ago I was told that she just left the firm! Her temporary cover looked at the my file, spoke to her manager and told me that because this money is for stamp duty only, it’s not considered a gift and therefore doesn’t require any proof of funds. 

    Then last week a third solicitor took over my file officially and when I spoke to her over the phone, she agreed that it’s not a gift in this case. But a couple of days later, she emailed me to say that although it’s not a gift, it “must be dealt with as if it is a gift”. She asked for pretty much all documents to be provided again because she needs them to be up to date, and £180 plus VAT upfront payment to “deal with a gift”.

    I’ve already replied and asked her politely to first speak to her colleague and possibly that manager. Do you think proof of funds is required in my case? And if so, is this new solicitor reasonable to ask me to gather everything all over again?
    With solicitors they need to prove all money going through them is traceable and therefore it needs to be treated as a gift and they will change you for this. The mortgage company won't care, but for money laundering reasons solicitors will not accept money they have not verified it's source. And they will charge you for the time spent to do this.
    Like I said above, checking the source is fair enough, but that doesn't mean there's a requirement to document that it's a gift (and it sounds like it's the latter part they're proposing to charge extra for).
  • Slithery said:
    You can ask to file and pay the stamp duty yourself so it doesn't need to go through them
    Not if you need a mortgage.

    Not true according to the stamp duty department, and the mortgage lender. Just another thing solicitors tell you, which doesn't seem to ring true.
  • Snookie12cat
    Snookie12cat Posts: 805 Forumite
    500 Posts Third Anniversary Name Dropper
    edited 3 February 2022 at 11:00PM
    user1977 said:
    ce5656 said:
    I’m in the middle of buying a property and have saved up all the deposit myself. My mum kindly offered to give me some money to cover the stamp duty and has already sent me this money from overseas. I do need it as my savings is just enough to cover the deposit.

    My solicitor asked for a number of documents as proof of funds which my mum prepared, translated and sent over last November. She then went quiet on this despite my many follow-up emails (she said she needed my mum to sign a gift letter but never provided a template). 

    Two weeks ago I was told that she just left the firm! Her temporary cover looked at the my file, spoke to her manager and told me that because this money is for stamp duty only, it’s not considered a gift and therefore doesn’t require any proof of funds. 

    Then last week a third solicitor took over my file officially and when I spoke to her over the phone, she agreed that it’s not a gift in this case. But a couple of days later, she emailed me to say that although it’s not a gift, it “must be dealt with as if it is a gift”. She asked for pretty much all documents to be provided again because she needs them to be up to date, and £180 plus VAT upfront payment to “deal with a gift”.

    I’ve already replied and asked her politely to first speak to her colleague and possibly that manager. Do you think proof of funds is required in my case? And if so, is this new solicitor reasonable to ask me to gather everything all over again?
    With solicitors they need to prove all money going through them is traceable and therefore it needs to be treated as a gift and they will change you for this. The mortgage company won't care, but for money laundering reasons solicitors will not accept money they have not verified it's source. And they will charge you for the time spent to do this.
    Like I said above, checking the source is fair enough, but that doesn't mean there's a requirement to document that it's a gift (and it sounds like it's the latter part they're proposing to charge extra for).
    But if they are doing everything they would do when they check a gift apart from maybe getting the signed letter, then they are going to want to get paid for it. Granted the cost quoted is high. My solicitor only wanted £60
  • ce5656
    ce5656 Posts: 39 Forumite
    10 Posts
    Slithery said:
    You can ask to file and pay the stamp duty yourself so it doesn't need to go through them
    Not if you need a mortgage.

    Not true according to the stamp duty department, and the mortgage lender. Just another thing solicitors tell you, which doesn't seem to ring true.
    That’s actually a good point which I never thought of! Other than the money my mum sent me, every penny in my account comes from my salary which I have years of payslips to prove. If I ask to pay stamp duty myself and demonstrate that the deposit money which will go through the solicitor’s account has trackable source, they should have no reason to question me any further?
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 349.9K Banking & Borrowing
  • 252.6K Reduce Debt & Boost Income
  • 453K Spending & Discounts
  • 242.8K Work, Benefits & Business
  • 619.6K Mortgages, Homes & Bills
  • 176.4K Life & Family
  • 255.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.