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  • FIRST POST
    • ~shoozy~
    • By ~shoozy~ 11th Aug 18, 8:32 PM
    • 51Posts
    • 10Thanks
    ~shoozy~
    BOMAD - proof required?
    • #1
    • 11th Aug 18, 8:32 PM
    BOMAD - proof required? 11th Aug 18 at 8:32 PM
    Hello all, the bank of mum and dad have offered to give me some money towards my deposit which is entirely unexpected and very kind.

    However, it's in cash rather than in a bank account, and mum has said that it might as well be under my bed than under hers. Unfortunately, I'm not joking, she likes to keep a secret stash.



    How can I satisfy money laundering regs about where the money came from?
Page 1
    • da_rule
    • By da_rule 11th Aug 18, 8:35 PM
    • 2,734 Posts
    • 2,411 Thanks
    da_rule
    • #2
    • 11th Aug 18, 8:35 PM
    • #2
    • 11th Aug 18, 8:35 PM
    You're going to have to speak to your conveyancer and see what they would accept. I've heard of some that will, at an absolute push, accept a statutory declaration detailing the source of the money etc.

    Best bet might be to get it paid in to a bank account in your parents name as the bank will also be obliged to carry out a certain amount of screening which may put the conveyancers at ease as well.
    • BankCustomer
    • By BankCustomer 11th Aug 18, 8:42 PM
    • 4 Posts
    • 1 Thanks
    BankCustomer
    • #3
    • 11th Aug 18, 8:42 PM
    • #3
    • 11th Aug 18, 8:42 PM
    The conveyancers probably just need you to confirm where the money came from eg your parents. I gave my children money for properties relatively recently and I transferred it from my bank to the solicitor in each case and confirmed in writing it was a gift. Could you mother pay it into the bank and then she transfers it to your lawyer ready for exchange and completion? Or could she (not as good) pay it into your account and they you certifiy - all 100% correctly that the money was a gift from your parent?
    • ThePants999
    • By ThePants999 11th Aug 18, 8:49 PM
    • 1,235 Posts
    • 1,541 Thanks
    ThePants999
    • #4
    • 11th Aug 18, 8:49 PM
    • #4
    • 11th Aug 18, 8:49 PM
    The conveyancers probably just need you to confirm where the money came from eg your parents. I gave my children money for properties relatively recently and I transferred it from my bank to the solicitor in each case and confirmed in writing it was a gift.
    Originally posted by BankCustomer
    You got lucky. Plenty of posts on here recently from parents asking "why are these solicitors asking for my bloody life history just because I gifted a deposit to my child?"
    • ~shoozy~
    • By ~shoozy~ 11th Aug 18, 8:56 PM
    • 51 Posts
    • 10 Thanks
    ~shoozy~
    • #5
    • 11th Aug 18, 8:56 PM
    • #5
    • 11th Aug 18, 8:56 PM
    The only other thing I was thinking was to not use it for the deposit but to use it for my fees and other costs, would that be allowed?

    It's not a huge amount of money, but I get that the amount doesn't really matter.

    My folks don't do online banking and the more I try to force the issue the more they'll kick back. I very nearly had them at my door today with the money (half expecting it to be in a blooming pillowcase or something)
    • ACG
    • By ACG 11th Aug 18, 8:58 PM
    • 17,321 Posts
    • 9,180 Thanks
    ACG
    • #6
    • 11th Aug 18, 8:58 PM
    • #6
    • 11th Aug 18, 8:58 PM
    Funny you should raise this thread. I have a case at the minute, 2 solicitors have 2 very different requirements.

    One wants bank statements, the other wants a gifted deposit letter and ID.

    Check with the Mortgage lenders and solicitors.
    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.
    • ~shoozy~
    • By ~shoozy~ 11th Aug 18, 9:01 PM
    • 51 Posts
    • 10 Thanks
    ~shoozy~
    • #7
    • 11th Aug 18, 9:01 PM
    • #7
    • 11th Aug 18, 9:01 PM
    Thanks ACG. That was going to be my next step, I've just had to change lenders and my solicitor emailed to say there would be a different solicitor handling things for me so need to get things progressing then I'll check with them next week.
    • G_M
    • By G_M 11th Aug 18, 9:03 PM
    • 44,963 Posts
    • 53,575 Thanks
    G_M
    • #8
    • 11th Aug 18, 9:03 PM
    • #8
    • 11th Aug 18, 9:03 PM
    Has you mum been making a bit on the side for cash? Doing........ what?
    • ~shoozy~
    • By ~shoozy~ 11th Aug 18, 9:10 PM
    • 51 Posts
    • 10 Thanks
    ~shoozy~
    • #9
    • 11th Aug 18, 9:10 PM
    • #9
    • 11th Aug 18, 9:10 PM
    Haha no not at all! She's just always kept a wee stash aside just in case.

    I actually think it's her pension that she calls free money.
    • martinthebandit
    • By martinthebandit 11th Aug 18, 9:14 PM
    • 3,554 Posts
    • 6,099 Thanks
    martinthebandit
    The only other thing I was thinking was to not use it for the deposit but to use it for my fees and other costs, would that be allowed?

    It's not a huge amount of money, but I get that the amount doesn't really matter.

    My folks don't do online banking and the more I try to force the issue the more they'll kick back. I very nearly had them at my door today with the money (half expecting it to be in a blooming pillowcase or something)
    Originally posted by ~shoozy~
    If it's not a huge amount the simplest way may be to use it for living expenses and let your own income accumulate in the bank.

    Maybe buy a safe though instead of keeping it under the mattress
    Politics -
    from the words Poli, meaning many
    and tics meaning blood sucking parasites


    (thanks to Kinky Friedman (or Larry Hardman) for the quote}
    • ~shoozy~
    • By ~shoozy~ 11th Aug 18, 9:17 PM
    • 51 Posts
    • 10 Thanks
    ~shoozy~
    If and when I get it, it'll be going straight in the bank!



    Good idea about using it for living expenses, I might keep it for moving costs etc
    • davidmcn
    • By davidmcn 11th Aug 18, 11:08 PM
    • 8,209 Posts
    • 8,567 Thanks
    davidmcn
    What are your expected timescales for buying? Solicitors will typically only look back a few months, so if you can bank it now you might be ok if you don't actually need it until say the new year. But otherwise it will only get past the most laid-back solicitors, so if you can get house price from elsewhere and use this for other expenses, that sounds a better plan.
    • Throwaway1
    • By Throwaway1 11th Aug 18, 11:18 PM
    • 311 Posts
    • 508 Thanks
    Throwaway1
    If and when I get it, it'll be going straight in the bank!



    Good idea about using it for living expenses, I might keep it for moving costs etc
    Originally posted by ~shoozy~

    That's my plan. My mum has offered to loan my husband and I 10k. We don't actually need this for the deposit but we sort of want it as a buffer for us to feel able to release more of our own money for the deposit, if that makes sense. We wouldn't want to use pretty much our entire savings and have nothing left for fees, furniture, decorating and general living so we're going to use our own money for the deposit and then get the extra 10k later for our safety net. That way we don't have to declare anything as it really will be our own money we are using, it's no-ones business if my mum wants us to give us a 'welcome to your new home' gift of 10k after completion.


    Failing that, does your mum have the amount of money she is wanting to give you in the bank? If so, can she transfer the money in the bank across and then she can deposit her stash into the bank to replace the amount she is giving you?
    • ~shoozy~
    • By ~shoozy~ 12th Aug 18, 11:32 AM
    • 51 Posts
    • 10 Thanks
    ~shoozy~
    What are your expected timescales for buying? Solicitors will typically only look back a few months, so if you can bank it now you might be ok if you don't actually need it until say the new year. But otherwise it will only get past the most laid-back solicitors, so if you can get house price from elsewhere and use this for other expenses, that sounds a better plan.
    Originally posted by davidmcn

    I'm hoping for September/October so not really enough time to bank it and claim it as mine.

    I think the best bet will be to keep it for other expenses. Can I use it for legal fees without the same scrutiny that I'd get using it towards the deposit?
    • ~shoozy~
    • By ~shoozy~ 12th Aug 18, 11:35 AM
    • 51 Posts
    • 10 Thanks
    ~shoozy~
    Failing that, does your mum have the amount of money she is wanting to give you in the bank? If so, can she transfer the money in the bank across and then she can deposit her stash into the bank to replace the amount she is giving you?
    Originally posted by Throwaway1

    She won't do any kind of electronic banking - she's the type who still pays everything in cash. Not sure why but you can guarantee she'll be at the post office every month paying her "community charge" (council tax) etc in cash. It's not worth the hassle trying to persuade her to do things differently, and I really don't want to sound ungrateful.
    • Throwaway1
    • By Throwaway1 12th Aug 18, 11:53 AM
    • 311 Posts
    • 508 Thanks
    Throwaway1
    She won't do any kind of electronic banking - she's the type who still pays everything in cash. Not sure why but you can guarantee she'll be at the post office every month paying her "community charge" (council tax) etc in cash. It's not worth the hassle trying to persuade her to do things differently, and I really don't want to sound ungrateful.
    Originally posted by ~shoozy~

    Fair enough, I was meaning your mum physically going to a brick and mortor bank and giving them your bank details and then returning with the cash later and paying it in rather than her electronically transferring it but I can see how you wouldn't want to make a fuss when she is doing you a favour. If you can afford the deposit without it then I suggest using it for something else and paying the deposit purely with your own money.
    • parkrunner
    • By parkrunner 12th Aug 18, 3:53 PM
    • 1,329 Posts
    • 2,066 Thanks
    parkrunner
    How much are we talking about and what's your mum's address please?
    • ~shoozy~
    • By ~shoozy~ 13th Aug 18, 9:00 AM
    • 51 Posts
    • 10 Thanks
    ~shoozy~
    Haha I don't even know how much, but I'd guess it's a couple of thousand. Not a huge amount on the grand scheme of things, but enough to cause problems!
    • M2808
    • By M2808 13th Aug 18, 2:37 PM
    • 25 Posts
    • 20 Thanks
    M2808
    I have noticed they all ask where the deposit comes from but don't ask where the money for their fees or survey fees etc. comes from
    • JosephK
    • By JosephK 13th Aug 18, 3:33 PM
    • 22 Posts
    • 7 Thanks
    JosephK
    BOMAD - proof required?
    I have same problem but from BOMAD side of fence where I'm wanting to give son some help with deposit and, yes, his solicitors are asking for all manner of proof of ID and source of funds even though money is coming from a savings account where it's been for ages.

    Replies received to my recent thread (Help with deposit - Bank of Mum & Dad v Money Laundering) seem to have covered the spectrum from "yes, it's an OTT pain" to "how dare you question the authorities, you peasant"

    Hopefully, you will find a solicitor who applies the AML regulations sensibly rather than treating a few thou the same as hundreds of thousands and wanting to tick boxes.

    While this reply probably doesn't exactly help, you have my sympathy on behalf of BOMAD, and best of luck.
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