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Gifting and proving source
jhglondon
Posts: 5 Forumite
Hello,
I am trying to buy a property with "cash". I have saved the vast majority from my work abroad. I have salary slips and bank accounts for this. My parents said they would lend me £30k to cover the shortfall. However, I realized they have this in cash in a deposit box. Because of the culture, they thought cash was safer and now it would be hard to prove where the source is, although they did not obtain the money in illegal ways. In fact it's money saved over the years or took with them from their home country before coming to the UK.
Please advise if anyone has experience with this.
I am trying to buy a property with "cash". I have saved the vast majority from my work abroad. I have salary slips and bank accounts for this. My parents said they would lend me £30k to cover the shortfall. However, I realized they have this in cash in a deposit box. Because of the culture, they thought cash was safer and now it would be hard to prove where the source is, although they did not obtain the money in illegal ways. In fact it's money saved over the years or took with them from their home country before coming to the UK.
Please advise if anyone has experience with this.
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Comments
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@jhglondon You're likely to struggle to find a solicitor that will be able to meet their AML obligations while acting for you in this purchase.
Perhaps consider taking out a personal loan if you need to be a cash buyer? Or if you own another property in the UK see if you can release cash from that property (additional borrowing or second charge) and then buy in cash?jhglondon said:Hello,
I am trying to buy a property with "cash". I have saved the vast majority from my work abroad. I have salary slips and bank accounts for this. My parents said they would lend me £30k to cover the shortfall. However, I realized they have this in cash in a deposit box. Because of the culture, they thought cash was safer and now it would be hard to prove where the source is, although they did not obtain the money in illegal ways. In fact it's money saved over the years or took with them from their home country before coming to the UK.
Please advise if anyone has experience with this.I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.
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Using a personal loan is a good idea, but you might it difficult to get a lender who will lend you money for a property purchase. If the property you are buying needs work doing to it, you could have the loan to do the work. (I've done exactly this in the past).
You might also find it easier to get a loan for £25,000 or less. Different regulations kick in above this amount, so most personal loans have £25,000 as a maxiumum loan amount. If so, consider whether your parents can provide acceptable proof of the source for £5000 and then they can give you that. Many solicitors (and financial firms) will have an amount that they regard as less risky. This might be £9999 or perhaps a bit less.
The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.1 -
Or perhaps parents can get a loan (and repay it from their cash).1
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