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Original poster

Gifted deposit and parent’s bank statement

47 replies

gbrk1c · 14/09/2018 06:31

My dad has given me money for a deposit for a property. The mortgage company are aware of this and have made a formal offer and have it wrote into the offer they are aware of the deposit being gifted. The deposit came from a sale of a property and I have a letter To prove this howevery on principle my dad has said it was/is a gift and will not produce bank statements.. not because he has anything to hide but because he gifted the money. I am aware of anti money laundering regulations, however will the letter produced confirming sale not be enough? I can evidence on my bank statement the money coming into my account which has been there for 2 months now. If the application cannot go ahead the sale will fall through which then I ask how long does the money have to be in my account before it is considered my own. (The mortgage company have the form from him saying it is a gift and has no interest etc and they are happy)

OP posts:

inquiquotiokixul · 14/09/2018 07:02

Who is asking for bank statements? We were fine with just a letter confirming that the money was a gift free of obligation, but that was over a decade ago.

Original poster

gbrk1c · 14/09/2018 07:12

The mortgage broker is asking for their compliance. My solicitors haven’t yet asked but the broker is saying they more than likely will.

OP posts:

ASauvignonADay · 14/09/2018 07:15

It might depend on the lender but for me, it had to be their bank statements. Instead of it going through me though my dad got in touch directly with the broker.

feejee · 14/09/2018 07:15

I had a similar gift, the bank were happy with a letter staying it was a gift. Solicitor however wanted 6 months bank statements from my gifter. It wouldn't have gone through without it. If had it in my account over 6 months as well. You're dad will likely have to provide 6 months statements.

YeTalkShiteHen · 14/09/2018 07:17

We had to do this, ours was a lump sum from my Mum’s estate, and they needed to see bank statements proving where it had come from. They’ve really tightened up procedures to try and stop money laundering.

Does your Dad realise that without the bank statements it could all fall through?

BurningTheToast · 14/09/2018 07:17

We had this same issue (with the lender not the broker) and they wouldn't budge so we came to an agreement that we would send them a copy of the statements showing the funds coming into their account and out to ours but we put post-its over the details that he wanted to keep private.

FiL had a similar view to your father's but he came round when we found a compromise and he realised that we couldn't buy the property otherwise.

OliviaBenson · 14/09/2018 07:18

Its for two reasons- you need evidence thar it's a gift so that the mortgage company are satisfied no one else has a claim on the house.

The statements are needed for money laundering purposes, and you can't escape that unfortunately.

Original poster

gbrk1c · 14/09/2018 07:20

The lender isn’t requesting it at all and they are fine with the discharge form my dad completed. Sounds like the house will fall through if statements not provided but then begs the question of how long does it have to be in my account before I don’t have to declare it as a gift.

OP posts:

inquiquotiokixul · 14/09/2018 07:22

I think it's an unreasonable ask. I am suspicious of mortgage brokers' "procedures" which are often much more privacy-invasive than dealing direct with a bank and seem to be as much about digging into your affairs to identify other financial services to pressure-sell you over actually providing the simple service you have asked for. The mortgage company themselves are happy so the offer shouldn't fall through. The broker is trying it on, wanting to get a picture of your dad's finances for ulterior motives. A document proving that your dad sold a house, combined with a letter from him that the money is a gift to you free of obligation, should be sufficient. The bank statements would be less strong proof than this anyway - they would prove only that a large sum was received on x date and then his gift went out on another date. That doesn't prove the source of the funds. The broker is interested in all the other info they can glean.

Original poster

gbrk1c · 14/09/2018 07:28

I guess all I can do is speak to my solicitor and see what they say. I do feel it is excessive and feel the sale of the property is enough. I am going to speak to my solicitor today and see what they say. Will update later on outcome.

OP posts:

OliviaBenson · 14/09/2018 07:30

I don't think the banks need the statements though, the duty is on your solicitor to be satisfied for money laundering purposes so it's likely them that will request it.

I've had this recently with a purchase (that didn't go through).

YeTalkShiteHen · 14/09/2018 07:31

Solicitors/mortgage companies will be audited (no idea if that’s the correct term, but you get the idea) to ensure they’ve complied with money laundering regulations. It really isn’t worth them taking a risk cutting corners, so I’d find out if it’s definitely needed first before you decide anything.

DaphneduM · 14/09/2018 07:35

In similar circumstances, when we gifted a deposit, we had to provide definitive proof of the origin of the money, in our case bank and building society statements. This was requested by the solicitor dealing with the house purchase. This was in addition to the letter from us making it clear that the funds provided were a gift and not a loan.

Original poster

gbrk1c · 14/09/2018 07:40

On another note, if I got my auntie to gift the deposit and provide statements which she would (I think) could that be an option, so essentially just changing the gifter?

OP posts:

Costacoffeeplease · 14/09/2018 07:40

I recently bought two uk properties using the proceeds of the sale of a property overseas. I had to show bank statements for every step of the process - receipt of the funds from the sale, transfer of funds from overseas bank account to UK account, and transfer of funds from UK account to solicitor’s account

IMHO your dad will have to provide bank statements

BurningTheToast · 14/09/2018 07:53

If your aunt is happy to do that, it might be a simpler way of doing this. I don't know about your broker but I would doubt that it's for sneaky reasons that they want this info. Mortgage brokers have to comply with loads of regulations to do with money-laundering and a good one - any one - won't risk their business by not having all the bits of paper they might need to produce.

BubblesBuddy · 14/09/2018 07:57

Your Dad has the accounts from the sale of the property. The solicitor who handled the sale will have produced this. Start with this document. It proves where the money came from. We documented the gift to our DD but didn’t produce bank accounts because the money was held by the solicitor and we sold and then bought quickly. You seem to have a grumpy dad though!

Lilao · 14/09/2018 07:57

I'll be honest, if you have it in your account and then send it to your aunty to transfer that will look a lot more suspicious than just refusing to send your dads statements.

If you have already told your solicitor where the money has come from then you can't really change it!

Original poster

gbrk1c · 14/09/2018 08:01

I’m not refusing to send them... my dad is out of his principles. I’m just trying to figure out a way through this.

OP posts:

FlamingJuno · 14/09/2018 08:05

We had a gifted deposit and a mortgage arranged by a broker. They wanted everything including our inside leg measurements 🙄. In the end I told the broker that they had had all the info we were prepared to give them, and if that meant the deal was off, then so be it. It came as no surprise that the offer progressed without further delay. Call their bluff.

Lokisglowstickofdestiny · 14/09/2018 08:17

Part way down this article, the possible requirement for parents bank statements. AML checks have tightened massively in the last few years so other posters experiences may not be relevant now.

communities.lawsociety.org.uk/property/magazine/september-2017/in-the-family/5062736.fullarticle

inquiquotiokixul · 14/09/2018 08:24

It would be a really bad idea to pretend that the money came from your aunt. The whole point of this process is to ensure it is all honest and open. Getting around it with dishonesty will not work.

Orchardgreen · 14/09/2018 08:31

I gifted money to my sister so she could buy a flat for cash.
I had to sign that it was a gift, she had to produce her bank statements and I had to send my bank statement to show it came from me.
The solicitor said it was ok to edit the bank statement to show the single transaction.

JuniperBeer · 14/09/2018 08:36

Is your issue that your dad doesn’t want you to see his statements or the solicitor? Can you arrange for him to send them directly if it’s the former, or just blur out/ block out the other lines on the statement just showing the transaction of the house sale, and then the money transfer to you?

greendale17 · 14/09/2018 08:37

howevery on principle my dad has said it was/is a gift and will not produce bank statements.. not because he has anything to hide but because he gifted the money.

^Not an excuse though is it? I wonder what your dad is hiding.........,

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