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Original poster

Buying with cash

22 replies

SaltySeaAir · 08/08/2021 20:40

We have had an offer accepted on a property, and we want to buy with cash. Has anyone done this recently? My husband is concerned about money laundering rules, and proving where the money has come from. The money is being pooled from all over the place, bank accounts, foreign property sales and investments. It's all our money, and completely legitimate but he's concerned about proving it?

Does anyone have any recent experience with this? If the cash has come from our bank account is that ok? Or do we need to provide a paper trial of how it got there?

OP posts:

qualitygirl · 08/08/2021 20:42

We have done this several times and we have never been asked where the money has come from. We have only been asked for proof of funds.

Original poster

SaltySeaAir · 08/08/2021 20:53

Thanks you. Can I ask how recently? I get the impression this is a recent change.

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qualitygirl · 08/08/2021 21:04

As recent as two years ago. Who is asking for a trail? Estate agents have only ever asked us for proof. Although dh did deal with the solicitors and I think they might have asked but I don't think they did?!

TwoLeftSocksWithHoles · 08/08/2021 21:13

You may want to consolidate your funds first (sooner rather than later so that everything is 'settled down') and then transfer the money in one transaction from one bank. I don't think there's any problem as it can be tracked.
Just don't turn up with notes in bundles held together with rubber bands...

texasss · 08/08/2021 21:13

We never had to provide proof and they've always been happy with savings/inheritance/gift.

Original poster

SaltySeaAir · 08/08/2021 21:15

Solicitors, although they haven't asked yet - we haven't got that far. They sent through a load of money laundering documents though which is why we are concerned about it. Dh has spent all day going through accounts trailing everything back. I'm not sure if he's worrying unnecessarily or not. Stress!!

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Marchitectmummy · 08/08/2021 21:16

The solicitors asked us for proof of all of our funds in our case we moved everything into one account prior to offering but needed to show thr solicitor where each large transaction came from.

It's not a recent change, you must have a trail there is nothing legal that isn't tracable now. Amongdt other things we also sold a foreign holiday home to buy a holiday home in tbe UK and just showed a completion certificate and then thr money hitting our bank account.

Itscoldouthere · 08/08/2021 21:17

I think money laundering rules have tightened, your solicitor will probably need to check where your funds have come from. I believe your bank my also look into large deposits, so money may take longer to clear. We are moving some money from abroad as part of our ongoing purchase, we intended to get it all into the uk well in advance incase it takes time to clear in our bank account.
I don’t think you will have any problems if you can prove where it comes from.

Original poster

SaltySeaAir · 08/08/2021 21:18

@TwoLeftSocksWithHoles

You may want to consolidate your funds first (sooner rather than later so that everything is 'settled down') and then transfer the money in one transaction from one bank. I don't think there's any problem as it can be tracked. Just don't turn up with notes in bundles held together with rubber bands...

Thanks. Consolidating isn't the problem, it's more if they ask where it all came from. For instance I had 150k in my bank I have transferred to him. That came from a foreign investment company, and the money that went into that company came from selling a flat in Poland 😳

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RainingYetAgain · 08/08/2021 21:21

We are giving DC a chunk of money for a deposit. So far everyone seems happy with a letter from our Stockbroker confirming that our money has been managed by him for several years.

Original poster

SaltySeaAir · 08/08/2021 21:21

Thank everyone. I'm sure it will be fine. It is all our money and all above board - hopefully we will be able to find all the evidence we need!

I think we may need to get some documents translated for some forgeign property sales.

OP posts:

Original poster

SaltySeaAir · 08/08/2021 21:22

@RainingYetAgain

We are giving DC a chunk of money for a deposit. So far everyone seems happy with a letter from our Stockbroker confirming that our money has been managed by him for several years.

That's good to know. Hopefully our accountant may be able to sign something if needed?!

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Wombat64 · 08/08/2021 21:28

I had a sale fail because the bank wouldn't release the cash to the buyer but he was overseas & was getting a young niece to go to the bank.

I think so long as you consolidate the funds & have a paper trail, you'll be fine.

Just don't offer in cash & then say you're getting a mortgage...just pulled out of a sale because of this...

Angliski · 08/08/2021 21:34

I do. Yes you do have to prove the origin. But you’re doing all the right things. You are legally obliged to prove the origin of the funds, so your statements will show movement into the one account and then you show, say, the sale of your polish home and the fund arriving there in a screen grab or completion letter, it’s not too bad.

spooney21 · 08/08/2021 21:35

I would get all your paperwork in order and be prepared to show evidence. We paid with cash with 90% coming from previous house sale (downsizing) and then a gift from PIL. PIL had written a letter saying they'd be gifting us x amount. Our solicitor , on day of exchange asked PIL for a years bank statements to show where the money had come from citing money laundering. My PIL were not very happy and it nearly ruined it, but they did agree and I felt awful! They were able to send directly to solicitor so that we didn't see their financials. My solicitor was very thorough about all aspects of our purchase though so I don't know if this is typical. I would imagine if there is multiple sources they will want to check the money trail as it is the solicitors responsibility.

Original poster

SaltySeaAir · 08/08/2021 21:41

Thanks everyone. We will crack on with this, so we will have plenty of time to get everything together. Our chain completed on Friday (offer accepted about 6 weeks ago) so hopefully things will start happening now. Hopefully if the solicitors want more documentation from us they will give us plenty of time!

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TeaAndStrumpets · 08/08/2021 21:45

We loaned DD a large sum to buy a house last year and had to provide proof of funds. We had to copy bank statements going back (I think) 12 months, and also give proof of where the money had come from originally. It had been an inheritance so we provided the probate details. You will also need to show your ID but that is standard.

spooney21 · 08/08/2021 21:46

I would just ask your solicitor well in advance what proof of funds they're going to want to see.

hairycabbage · 08/08/2021 22:10

I did it a few months ago. I had to send a screenshot of the money in my account(s) before and after transferring to my savings account then send to the solicitor. They were very meticulous about it

Flowers500 · 08/08/2021 22:12

Money laundering rules are fairly tight! We had to show really the last 6 months of where money was and provide explanation of origin (bank account statements, income, info about savings, etc). Lawyers wouldn’t take the money until completed.

Map it out really clealry for them, loads of documents and a simple explainer all in one email

Wallywobbles · 09/08/2021 06:08

I used to work in in the English speaking part of a French bank and we'd have to have had proof or where it all came from. It could come from multiple sources but we'd need proof. So act of sale from foreign properties etc.

When you buy/sell property in France though the notaire gives you a document for the bank.

It shouldn't be hard to get proof. Annoying yes.

QueenStromba · 09/08/2021 14:24

We bought recently. The solicitor wanted payslips and a few historical bank statements showing the money accumulating over time.

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