Gifted Deposit - Source of funds

MickeyFTB

I know about ML checks for gifted deposit but just looking for some guidance..

My FIL (Father In Law) kindly gifted us money for a house deposit in November 2020 and with covid we held onto this until we found the right house. We were due to exchange last September and our lender/solicitor communicated directly with my FIL for ID and verification of funds which all seemed fine.

We are now due to exchange again on the same house and in asking for source of funds for the deposit they’ve asked again for the same information from my FIL but instead of directing to him they’ve sent the request to me.

Does the source of funds documentation have an expiry date? Seems silly that the gift was sent in 2020 so updated statements aren’t going to show the build up but the previous statements provided will.

Should they be asking via me? I know he’s family but not sure how comfortable anyone would be sharing their bank statements with others.

newsgroupmonkey_

MickeyFTB said:

I know about ML checks for gifted deposit but just looking for some guidance..

My FIL (Father In Law) kindly gifted us money for a house deposit in November 2020 and with covid we held onto this until we found the right house. We were due to exchange last September and our lender/solicitor communicated directly with my FIL for ID and verification of funds which all seemed fine.

We are now due to exchange again on the same house and in asking for source of funds for the deposit they’ve asked again for the same information from my FIL but instead of directing to him they’ve sent the request to me.

Does the source of funds documentation have an expiry date? Seems silly that the gift was sent in 2020 so updated statements aren’t going to show the build up but the previous statements provided will.

Should they be asking via me? I know he’s family but not sure how comfortable anyone would be sharing their bank statements with others.

They should go directly to your FIL. It's very lazy.

Plus if they've already done their homework, they shouldn't be doing it again. They'll be charging you again for it!

london21

They usually go direct. They might need updated financials but the money has left your FIL'S account for some time.

You might need to update them that this has already been provided or communicate with them what exactly they need to avoid unnecessary delays.

MickeyFTB

Thanks both, I thought as much but having not been in this position before I just wanted to check - the solicitors are pretty lazy and working from home, I’m sure I got him out of bed when I chased this morning!

theartfullodger

I've twice had to sign forms detailing source of funds for small-ish pert-deposits.  If that's what's the lender requires, that's what the lender requires, or  no deal.  Nowt you can do about it.

Should apply to all, including oligarchs etc etc etc

MickeyFTB

theartfullodger said:

I've twice had to sign forms detailing source of funds for small-ish pert-deposits.  If that's what's the lender requires, that's what the lender requires, or  no deal.  Nowt you can do about it.

Should apply to all, including oligarchs etc etc etc

I’m not disagreeing that the information needs to be provided but was more a question on whether the original documentation has an expiry date on it as they’ll be providing the same thing again. Also who’s role it was to request as I don’t want to be privy to my FILs financials when I don’t need to be.

This also isn’t for the lender, we’d already supplied that to them when they did their checks and to the solicitor too but it’s only the solicitor who is asking for it again.

aoleks

the lender is being overcautious, at some point the funds become your own. they should look at the last 6 months of statements and that's that...

MickeyFTB

I ended up speaking to the solicitor and explaining what had already been provided - they said they hadn’t received it so I explained that they’d need to speak to my FiL to explain that they’ve lost his documents and there is most likely some data breach that may need to be logged as it was sent electronically.

They’ve now confirmed they have miraculously found said documents and they’re now with the solicitors compliance team to check it’s covered 🤞🏽