Jargon Buster: Gifted Deposit – what do you need and why do you need it?
Posted on November 23rd 2020
It is becoming increasingly common for buyers to receive financial aid from family members to purchase their first home. If you are receiving any monies from a third party, no matter how small, this may be classed as a gifted deposit and will need to be disclosed to your solicitor. To avoid any delay, you should disclose the gift as soon as possible.
What do you need?:
For each giftor we will require:
- Copies of their certified ID
- Proof of funds in the form of six months bank statements
- A letter signed by them confirming; their full name and address, the gifted sum, their relationship to you, that they will have no interest in the property, that they will not reside at the property and that they are financially solvent.
Why do you need it?:
If you are receiving a mortgage, depending on the lender, we may need to declare the gift and seek their confirmation that the gift is acceptable. This is required even if your broker has previously declared it.
Under the Anti-Money Laundering legislation we are also obliged to sufficiently assess the origins of any monies received into our account.
Call and speak to a lawyer on 01244 312306