solicitor asking for extensive proof of deposit - is this normal?

(12 Posts)
DraenorQueen Fri 06-May-16 20:21:14

Hello all,
I'm buying a house thanks to a generous gift of a deposit from my mum (12k)
My solicitor has been in contact with my mum asking her for several documents including screenshots of her account with the money in, signed letter from my grandmother explaining that the money was originally a gift from her, my mum's last 3 months payslips - irrelevant as the money hasn't been earned through her job.
If my mum simply transfers the money to my account, does it therefore remove the need for her to pull all these documents together? She works approx 70 hours a week and I feel a bad for adding to her workload. Is this normal procedure from the solicitor?
Many thanks!

Kirriemuir Fri 06-May-16 20:44:20

Yes. Normal. It is for money laundering regulations set by the law society. Not sure about England but here in Scotland there needs to be a full paper trail for 6 months so even if she transfers the funds to you, you will still need to prove where the money was for 6 months prior.

DraenorQueen Fri 06-May-16 21:03:07

Thanks, that's much appreciated.
I Love MN grin

Spickle Fri 06-May-16 23:09:10

Yes normal unfortunately - they'll want primary ID too, passport or driving licence and a signed letter stating that the money is a gift not a loan, that she will not be living in the property and will not make a claim on the property and will not be named on the deeds.

BurningTheToast Sat 07-May-16 07:06:01

As Kirriemuir says, it's just money-laundering regulations. We've had to do something similar. Jumping through these hoops is tedious but apparently the law.

GinaBambino Sat 07-May-16 07:09:31

Yep completely normal. We had it with solicitor and mortgage company so keep everything on file as they ask for the same things. Bit of a ball ache but it made the process much easier in the long run.

43percentburnt Sat 07-May-16 07:14:06

Completely normal, your mortgage broker may also ask for the docs - so take two copies to save further hassle!

kernowgal Sat 07-May-16 07:44:26

Gosh, I didn't have to supply anything near as much as that, just a letter from my parents stating the money was a gift and they would have no claim on the house/deeds etc. They are retired and so would not be able to provide payslips etc anyway. I gave that to the broker, who then passed it to the lender; the solicitor didn't ask to see it. I provided a current passport as ID, plus proof of address, and that was that.

Ememem84 Sat 07-May-16 08:02:11

Yep. Totally normal. its to comply with the anti-money laundering regulations.

Basically if you don't provide it will cause problems.

A client of mine was buying a property and refused point blank to provide us with anything we could provide to the lawyers etc. They lost the property. We got blamed. Even though they were asked and refused to provide said information. They didn't think they needed to provide it.

Ilovewillow Sat 07-May-16 08:12:24

Money laundering regulations I'm afraid - property purchase and mortgages have really tightened over over the recent yes!

Skittlesss Sun 08-May-16 14:14:48

We had to send proof of identity, proof of address, letter saying they didn't want any rights over the house and proof of where the money was coming from.

DraenorQueen Sun 08-May-16 16:01:26

Many thanks, everyone. Natwest, my lender, were happy with a letter the money was a gift and there as no expectation of repayment. Solicitors, however, need all the additional documentation. I get why though and it's not an issue. Both my mum and grandma are sending them off tomorrow. God I want things to get cracking!!

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