Beyond belief

PaulBis1951

I want to gift my daughter £10,000 £5k as gift and £5k as a loan, she is buying a property. I have just received an email with attached form to fill in requiring my passport as proof of id, bank statements to prove its my money where the money has come from etc. I am not sure if this is because daughter was short of deposit and said that I was giving her the shortfall or just more bureaucracy? Can anyone tell me that this is correct or is there a limit of gift before this is required such as £9,999

Ayr_Rage

Normal anti money laundering checks, just do it.

Keep_pedalling

On top of this her lender will require you to sign a disclaimer that the whole £10k is a gift and that you have no interest in the property. 

born_again

The £5K loan will also affect the affordability of the mortgage.

retiredbanker1

Who is actually asking for the information?

Is it the solicitor/conveyancer? If so perfectly normal they have to adhere to money laundering regulations just as much as a bank or mortgage lender.

silvercar

@PaulBis1951, I’ll move this to the mortgage board.

Sterile

born_again said:

The £5K loan will also affect the affordability of the mortgage.

No it won’t as it’s an informal arrangement with a family member and not an official loan with a set repayment structure which needs to be kept to. As far as the mortgage process is concerned, the 10k is a gift and she can sort out paying back the 5k to her Dad between themselves somewhere down the line.

user1977

It’s normal to have to provide this sort of evidence to prove the source of funds, yes. Is there actually a problem with producing what they’ve asked for?

ACG

Its not uncommon for anti money laundering checks. 
In fairness, if the limit was £10k and you offered to £9,999 then I think that would look a bit dodgy. 

silvercar

Sterile said:

born_again said:

The £5K loan will also affect the affordability of the mortgage.

No it won’t as it’s an informal arrangement with a family member and not an official loan with a set repayment structure which needs to be kept to. As far as the mortgage process is concerned, the 10k is a gift and she can sort out paying back the 5k to her Dad between themselves somewhere down the line.

I agreed provided Dad is prepared to declare that it is a loan. Some Dad’s may not be prepared to do so.

user1977

ACG said:

In fairness, if the limit was £10k and you offered to £9,999 then I think that would look a bit dodgy. 

Yes, that's why such limits tend not to be publicised.