• Sep

The Bank of Mum and Dad is not Money laundering.

Whether you are receiving a deposit from mum and dad or your deposit is coming by way of a gift or from another source a little early planning can safe last minute delays.
It is extremely important to disclose to your solicitor early in the process that your deposit is a gift, otherwise if this emerges late in a purchase it can delay the transaction and put it in jeopardy.  We have seen more and more chains delayed at the last minute as it can be very difficult to pull the necessary paperwork together quickly – particularly if the person making the gift is unavailable because they are on holiday.
Solicitors and Estate Agents have to comply with Anti Money Laundering procedure and it’s likely to be the case that your solicitor will need to substantiate the source of the money and have the relevant documents in place before you can exchange. Some mortgage companies may also require a signed agreement by the giver that the donation in question is indeed a gift and not a loan.
With over 64,000 property purchases over the last year involving the buyer relying on a gift of cash for all or part of the deposit up 5.36 per cent to the end of June a little planning can save a lot of stress.