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    • db1133
    • By db1133 6th Mar 18, 8:37 PM
    • 10Posts
    • 1Thanks
    db1133
    ID check expenses for conveyancing
    • #1
    • 6th Mar 18, 8:37 PM
    ID check expenses for conveyancing 6th Mar 18 at 8:37 PM
    Hi!
    I'm buying my first house and am now in the process of sorting out the conveyancing stuff. The money that I am using to buy the house is being lent to me from a number of different people in my family. The conveyancing company needs to do ID checks on everyone that has gifted me money for money laundering purposes. The costs are set at 95 per person, which means that for the 5 people that are lending me money it'll cost about 500! I was wondering is it legal for me to get everyone to send the money to my father and to get him to send me the money, therefore meaning that the money will only come from him and I will only need to get an ID check on him? Any help would be great. All the money is legal and am only trying to save money on checks that are necessary, but very costly!
Page 1
    • ACG
    • By ACG 6th Mar 18, 8:40 PM
    • 16,846 Posts
    • 8,790 Thanks
    ACG
    • #2
    • 6th Mar 18, 8:40 PM
    • #2
    • 6th Mar 18, 8:40 PM
    Is there a Mortgage involved?
    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.
    • Edi81
    • By Edi81 6th Mar 18, 8:45 PM
    • 450 Posts
    • 311 Thanks
    Edi81
    • #3
    • 6th Mar 18, 8:45 PM
    • #3
    • 6th Mar 18, 8:45 PM
    Are they lending you or gifting you the deposit.
    This is very important if there is a mortgage involved.
    • ACG
    • By ACG 6th Mar 18, 8:49 PM
    • 16,846 Posts
    • 8,790 Thanks
    ACG
    • #4
    • 6th Mar 18, 8:49 PM
    • #4
    • 6th Mar 18, 8:49 PM
    Are they lending you or gifting you the deposit.
    This is very important if there is a mortgage involved.
    Originally posted by Edi81
    It is being lent.
    The money that I am using to buy the house is being lent to me from a number of different people in my family.

    The costs are set at 95 per person, which means that for the 5 people that are lending me money it'll cost about 500!
    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.
    • db1133
    • By db1133 6th Mar 18, 8:49 PM
    • 10 Posts
    • 1 Thanks
    db1133
    • #5
    • 6th Mar 18, 8:49 PM
    • #5
    • 6th Mar 18, 8:49 PM
    So there is no mortgage involved at this stage (we are buying in cash). However, I will then remortgage to get the money to pay them back
    • ACG
    • By ACG 6th Mar 18, 8:52 PM
    • 16,846 Posts
    • 8,790 Thanks
    ACG
    • #6
    • 6th Mar 18, 8:52 PM
    • #6
    • 6th Mar 18, 8:52 PM
    So there is no mortgage involved at this stage (we are buying in cash). However, I will then remortgage to get the money to pay them back
    Originally posted by db1133
    If thats the case then it is the solicitors requirement (rather than the lenders). Have you asked them whether you can do what you are proposing?

    If not, I would suggest speaking to other solicitors rather than trying to be clever. If the solicitors ask for bank statements then it could all become a problem down the line.
    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.
    • Edi81
    • By Edi81 6th Mar 18, 8:53 PM
    • 450 Posts
    • 311 Thanks
    Edi81
    • #7
    • 6th Mar 18, 8:53 PM
    • #7
    • 6th Mar 18, 8:53 PM
    I see that but the op also refers to gifting.

    Perhaps op needs to learn the difference between a loan and a gift and use clear explanations.
    • steampowered
    • By steampowered 6th Mar 18, 8:53 PM
    • 2,500 Posts
    • 2,421 Thanks
    steampowered
    • #8
    • 6th Mar 18, 8:53 PM
    • #8
    • 6th Mar 18, 8:53 PM
    They will look at where the money came from, e.g. from bank statements.

    If you gave them your father's bank statements with 4 massive unexplained transfers they will ask where the money came from, so you are back to square one.
    • MarcoM
    • By MarcoM 6th Mar 18, 8:59 PM
    • 504 Posts
    • 70 Thanks
    MarcoM
    • #9
    • 6th Mar 18, 8:59 PM
    • #9
    • 6th Mar 18, 8:59 PM
    i find this an infringement of the OP's civil liberties.
    • db1133
    • By db1133 6th Mar 18, 9:45 PM
    • 10 Posts
    • 1 Thanks
    db1133
    @Edi81 sorry I didn't realise that it was important to make it clear whether it is a loan or a gift.

    @MarcoM could you explain what you mean?
    • davidmcn
    • By davidmcn 6th Mar 18, 10:30 PM
    • 7,670 Posts
    • 7,816 Thanks
    davidmcn
    If thats the case then it is the solicitors requirement (rather than the lenders). Have you asked them whether you can do what you are proposing?
    Originally posted by ACG
    They can't, because what the solicitors are doing is primarily driven by anti-money-laundering regulations (which apply to any money passing through their hands), and checking the source of funds would include checking where dad got the money from, which brings you back to square one.

    If not, I would suggest speaking to other solicitors rather than trying to be clever.
    I would suggest speaking to other solicitors who aren't going to charge an extortionate amount simply for doing the AML checks (or seeing whether the current ones are prepared to be flexible with their fees).
    • boots_babe
    • By boots_babe 7th Mar 18, 2:03 PM
    • 2,881 Posts
    • 1,374 Thanks
    boots_babe
    95 for an ID check seems extortionate! Having just managed the conveyancing process for both a sale and purchase on behalf of my parents, it cost 6 per person for an ID check.

    • shortcrust
    • By shortcrust 7th Mar 18, 2:10 PM
    • 1,906 Posts
    • 2,801 Thanks
    shortcrust
    For info:

    https://en.wikipedia.org/wiki/Civil_liberties_in_the_United_Kingdom
    • MarcoM
    • By MarcoM 7th Mar 18, 2:11 PM
    • 504 Posts
    • 70 Thanks
    MarcoM
    What do these ID checks actually entail?


    Surely isn't it enough to show a passport or driving licence for each contributory?


    Or are you talking about CRB checks or enhanced CRB checks?
    • davidmcn
    • By davidmcn 7th Mar 18, 2:17 PM
    • 7,670 Posts
    • 7,816 Thanks
    davidmcn
    What do these ID checks actually entail?

    Surely isn't it enough to show a passport or driving licence for each contributory?
    Originally posted by MarcoM
    Generally checking photo ID plus an acceptable proof of address, as well as checking the source of founds - so, examining bank statements going back a certain length of time to verify that the funds being provided appear to be the donor's rather than coming from another source.

    It has nothing to do with CRB checks.
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