Source of funds nightmare

Hello
Has/is anyone having issues with proving source of funds for a Mortgage? 
I paid an invoice for our current home extension in March, directly to the builder via invoice. 
my partner, as it was pre end of his tax year paid me back from his business out of his personal dividends. 
Essentially now I’ve been told I can’t use this funds as it’s a gift as he’s not my spouse and is now my ex partner (still living together) 

I said to the solicitor I will sell my car but she wasn’t satisfied unless I had part of the V5, I could offer monetary trails in and out from the trader and an invoice, no good. 

Then she suggested my mother gift it, so we did, she’s 73 and has various accounts so we sent it across with statements from all accounts. She still couldn’t prove part of the funds. So I was told to return it. 

She then suggested we use my late fathers estate funds in my mothers isa. 
We had to close it down as we couldn’t transfer the amount we needed and  Barclays are transferring in full to my current account. (1-3 days we were told, now day 2 no funds)

I’ve now been told (was supposed to be completing tomorrow)! That it should only be the amount of the declaration of “gift” amd that she’ll need to change it! Which involves another 60 mile trip to my mother’s. 
It’s likely my sale isn’t going ahead sadly, have I been unlucky with solicitor or is this the way things are nowadays with AML? 
Thank you 

Comments

  • You need to put in a complaint to a senior partner. Sounds like you are doing everything you can and your solicitor is either being overzealous or not explaining what they need correctly.
  • MWT
    MWT Posts: 9,108
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    ... have I been unlucky with solicitor or is this the way things are nowadays with AML? 

    A bit of both from what you've said so far...
    The first problem with the funds from your ex-partner was probably unavoidable and I can see the problem if you were selling your car to a car dealer that doesn't use the electronic V5 transfer but is still using the old, somewhat dodgy trick of just taking the V5 from you and promising to handle the transfer of ownership at some later point (they do that to avoid the vehicle actually being registered in their name before they sell it on...).
    Then if your mother could not prove the source of the funds from her accounts the solicitor had little choice there either.
    Then finally it seems like the final gift letter has been incorrectly completed using the full amount of the ISA, not just the amount gifted?
    I'm not sure the solicitor has done anything wrong, and it looks like trying to rush through each alternative has been at the root of the problem as I'm not sure how the solicitor could have anticipated each of the problems, they have just been careful to make sure the paper-trail was solid in each case which probably comes from their compliance team rather than the individual solicitor...  

  • amnblog
    amnblog Posts: 12,386
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    You need to put in a complaint to a senior partner. Sounds like you are doing everything you can and your solicitor is either being overzealous or not explaining what they need correctly.
    The Solicitor is following the Lender's directions and the Legal requirements. You cannot have an 'unconnected party' gifting funds to a purchase.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, 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.
  • user1977
    user1977 Posts: 13,297
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    edited 19 December 2023 at 8:57AM
    Not very clear on the first point - is the property jointly owned and if so was the money from the partner repaying a loan (of their share of the works)? If so then has the solicitor rejected the possibility of evidencing that somehow?

    I don’t see anything wrong with the solicitor’s requests on the other options. Why can’t you sell your car in the way suggested?
  • dunstonh
    dunstonh Posts: 115,646
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    Has/is anyone having issues with proving source of funds for a Mortgage?I paid an invoice for our current home extension in March, directly to the builder via invoice. my partner, as it was pre end of his tax year paid me back from his business out of his personal dividends.
    That could have been explainable and accepted if the amounts added up and the right words used.

    i.e.
    1) The amount paid by your ex was half the invoice amount
    2) you had not mentioned paid to you out of his dividends.  That is irrelevant as its how you got the money that matters.   It was a return of money owed to you by your ex.   By bringing dividends into it, you have muddied the water.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • grumbler
    grumbler Posts: 58,629
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    edited 19 December 2023 at 1:29PM
    amnblog said:
    You need to put in a complaint to a senior partner. Sounds like you are doing everything you can and your solicitor is either being overzealous or not explaining what they need correctly.
    The Solicitor is following ... the Legal requirements. 
    I guess these 'Legal requirements'  are as vague (and open to interpretation) as, say, DPA. I remember a solicitor wanting to see 3 years (!) worth of bank statements first, but then agreeing that 1 year was sufficient.
    We are born naked, wet and hungry...Then things get worse. :(

    .withdrawal, NOT withdrawel ..bear with me, NOT bare with me
    .definitely, NOT definately ......separate, NOT seperate
    should have, NOT should of
    .....guaranteed, NOT guarenteed
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