Gift letter required when no lender?

Countrysider

This may sounds obvious but do you need a gift letter if you're being given money for a solely cash purchase, therefore no mortgage lender?

All the examples i've found talk about a 'gifted deposit' as being a lender requirement. All the templates are lender-specific. 

I know AML checks will be done on the money. That's all fine - i just don't know if a solicitor cares (so long as it's a legitimate source) if the money is a gift/loan/etc when there's no lender involved. 

user1977

No, the solicitor only needs to comply with AML requirements to verify the source of funds (and be comfortable that there's nothing generally suspicious about the transaction). Entirely up to you to figure out whether it's a gift, a loan, or something else.

theartfullodger

If your solicitor requires one, then he requires one.

If I heard a solicitor didn't bother with such checks I'd not use them.

Countrysider

theartfullodger said:

If your solicitor requires one, then he requires one.

If I heard a solicitor didn't bother with such checks I'd not use them.

May i ask why? The source of the funds will be checked (there's no question about that not happening) and the funds to the solicitor will come from my account. it's just a case of showing the proof of funds at the first stage. 

If i moved the money into my account before just before would this be satisfactory? Again, AML will be done so that's not really the question here. 

user1977

theartfullodger said:

If your solicitor requires one, then he requires one.

They don't require one. The only purpose of such letters (unless the buyer actually wants to document that it's a gift) is to satisfy mortgage lenders that there isn't another loan involved.

Rosesgirl

Someone will correct me if i am wrong but i have been looking at requirements for funds being given to me to do a transfer of equity from joint to single , no mortgage involved. I have read solicitor will want a letter of confirmation the funds are a gift by the donor so there are no further claims further down the line with regards ownership of the property.

user1977

Rosesgirl said:

Someone will correct me if i am wrong but i have been looking at requirements for funds being given to me to do a transfer of equity from joint to single , no mortgage involved. I have read solicitor will want a letter of confirmation the funds are a gift by the donor so there are no further claims further down the line with regards ownership of the property.

Probably just standard wording which assumes there is a mortgage involved. As I said, you might opt to get something clarifying it, but it's not something for the solicitor to insist on - up to you.