Proving identity for equity release

helenajosephine

Hi 

My 80+ yo Mum has decided to release some of the capital in her home through the equity release route. She has hit a complication because the first name she is known as and is on some of her documentation, is not the first name that appears on her birth certificate. This is an informal change, not official.

The solicitors who have been appointed by StepChange (who she is arranging the ER through) have insisted that she needs a 'statement of truth' which they will charge £250 to arrange. 

Although this isn't a cost she will have to pay upfront, she is scandalised that this is necessary. She has never encountered this problem in the past, and it wasn't a problem when she and my Dad originally took out the mortgage. 

She doesn't have her 'own' solicitor and thought going with the one that dealt regularly with the StepChange charity made sense. If anyone can advise whether this 'statement of truth' is indeed a necessity, or if there is another way for her to prove her identity without the additional cost, I would be really grateful for any advice I can pass on to her. 

elsien

Does she not have a passport or a driving license in her original name?

MWT

... or even a 'Blue Badge' can be used as an identity document, but if she does not have any photo ID that shows the name on her birth certificate then she is probably going to have to follow the process suggested by the solicitors. 

KYC/AML procedures will have changed a lot since she last took out a mortgage...

helenajosephine

elsien said:

Does she not have a passport or a driving license in her original name?

Hi Elsien. Yes, she has a passport, but the solicitors have told her that she still needs a statement of truth. TBH, I don't quite understand what the issue is. She even called the mortgage company directly who said they had accepted the application and were just waiting for the solicitors to finalise the paperwork. But they won't unless she goes through the statement of truth process. Unfortunately, as they have already done a lot of the work, it would be hard for her to change solicitors now (and a local firm she contacted for advice said they would charge her more for the service!)

helenajosephine

MWT said:

... or even a 'Blue Badge' can be used as an identity document, but if she does not have any photo ID that shows the name on her birth certificate then she is probably going to have to follow the process suggested by the solicitors. 

KYC/AML procedures will have changed a lot since she last took out a mortgage...

Hi MWT. She does have a blue badge as well, but I think that is in her informal first name, not her birth name. Its all very confusing. I think she has decided to follow the process because any of the options we have looked into will probably just hold the process up. As you say, the requirements for proof of identity are probably very different now

MWT

helenajosephine said:

Hi Elsien. Yes, she has a passport, but the solicitors have told her that she still needs a statement of truth. TBH, I don't quite understand what the issue is.

This sounds like a KYC issue and it suggests that at least some of the documentation she has provided is not in her birth name, hence the need for the statement of truth, as she will be asserting that the other name is one she is using as well as her birth name. 

The solicitor needs to cover themselves even if the lender has already accepted the application.

dunstonh

The anti-money laundering/KYC requirements are not a strict set of rules.  Firms interpret the guidelines and decide what they should be doing.    So, you will have one firm that considers something acceptable.  You will have another firm that considers that same thing unacceptable.

Also, historically, firms that have had an inspectation that found their AML/KYC methods were lacking then to then have to have a period where they do more than is typical.

The solicitor has decided that the legal risk is too high and that a statement of truth is required.   It's gone beyond getting proof of name.     The fraud risk has increased in the solicitor's eyes.     If the solicitor was being prosecuted for facilitating a fraud, they would be asked what they did to mitigate the risk.

it wasn't a problem when she and my Dad originally took out the mortgage. 

When was that?  Your mum is 80, so the original mortgage was taken out what? 40 or 50 years ago?   We are probably talking before AML/KYC requirements existed.  Even if it was after it started, we are on the 6th version of it now and each version increases the requirements.  The EU has already proposed the 7th version to further strengthen the requirements.

Although this isn't a cost she will have to pay upfront, she is scandalised that this is necessary.

It is a consequence of changing your name informally.  Legally, you can do that, but it doesn't mean it is without consequences.    Usually, it's recommended to keep all your formal documentation/records in your legal name to avoid issues like this.

Effectively it boils down to several choices of what to do next.
1 - pay it and get on with it
2 - change solicitor and cover the costs of that
3 - stop the whole process.

sheramber

Would it be sufficient if she changed her name by DeedPoll?

elsien

It’s probably gone past that stage by now if the solicitor is concerned about fraud.