Gifted Deposit

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Durban
Durban Posts: 478 Forumite
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in Mortgages & endowments
I will be gifting a deposit to my child to assist them buy their first property.


When would I have to transfer this into their account?


Could it be when the deposit is required , or does it need to be in their account sooner than that to satisfy the lender and if so , when should it be transferred to them.


Ideally , I would like to just transfer it when the deposit is required by the solicitor.


Many thanks

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  • davidmcn
    davidmcn Posts: 23,596 Forumite
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    You don't need to transfer it specially early. Be aware though that you will be expected to produce ID and evidence of the source of funds (usually just a few months' bank statements).
  • Durban
    Durban Posts: 478 Forumite
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    Thank you


    I had heard that some lenders apparently like the gifted deposit to be in the child's account for a few months first. Is this the case?


    I would much prefer to transfer the deposit when it is required.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
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    Durban wrote: »
    I had heard that some lenders apparently like the gifted deposit to be in the child's account for a few months first. Is this the case?
    I haven't heard of any, and I don't see why they would prefer that. No doubt your child can check if and when they have a lender in mind.
  • retiredandskint
    retiredandskint Posts: 845 Forumite
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    I gifted my son his deposit a couple of months ago straight to the solicitor. I had to provide passport and driving licence details and where the money came from. I also had to sign a declaration stating that it was a gift and I would have no interest in the property.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    If its coming from outside the UK is the only reason I can think of for transferring early.
    Some non mainstream lenders require it in UK for 3 months prior to application.

    Can't think of any high street lenders that need it transferred. Most don't check deposit anyway, and if they do it will just be signing a form saying its a pure gift
  • Durban
    Durban Posts: 478 Forumite
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    Thank you all very much.

    I got the wrong end of the stick. I think where I heard this from, the deposit was coming from outside the UK , mine will definitely be coming from here.
  • nik_k
    nik_k Posts: 301 Forumite
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    My Mum has just gifted us some of our deposit. We had to show the transfer into our savings account, and she has had to provide her ID and also evidence of the funds leaving her account and the origin of the funds into her account...so all a bit convoluted!
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