Property Lawyers

[Deleted User][Deleted User] Posts: 520
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Hi

My partner and I are in the middle of buying a house. The deposit is coming from our parents who have given all the relevant details to our mortgage lender and they have given us an offer.

We are on the verge of exchanging when our crappy solicitors announce they need copies of our parents bank statements, passports and a letter from them as well.

Is this normal? No one else seems to have been asked for this by their solicitors when buying their houses?!

I'm confused!

Thanks in advance

Comments

  • Keefy-boyKeefy-boy Posts: 13,561
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    Yes fairly normal, part of money laundering regulations. May have been avoided if the parents had given you the money rather than the solictor directly though, but you would still have had to provide your own ID yourselves.
  • [Deleted User][Deleted User] Posts: 520
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    The thing is, the money is already sitting in our bank account! But they still want all the details. Which is difficult because my dad lives abroad!
  • JulesandSandJulesandSand Posts: 6,012
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    The simplest thing to do is to telephone your solicitor and ask.

    It does sound like a money-laundering issue however.
  • [Deleted User][Deleted User] Posts: 520
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    Thanks for your advice
  • Hobbit FeetHobbit Feet Posts: 18,798
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    Isn't there a limit you can gift your children and after that it becomes taxable?
  • JulesandSandJulesandSand Posts: 6,012
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    Thanks for your advice

    I'm not sure if that's sarcastic or not, but if you do decide to ask your solicitor I'm genuinely interested to know the answer.

    I've given 2 of my children money for house deposits and I haven't been asked for ID.

    They did use my solicitor, but if it's a statutory requirement then it would still need to be done.
  • [Deleted User][Deleted User] Posts: 520
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    I'm not sure if that's sarcastic or not, but if you do decide to ask your solicitor I'm genuinely interested to know the answer.

    I've given 2 of my children money for house deposits and I haven't been asked for ID.

    They did use my solicitor, but if it's a statutory requirement then it would still need to be done.

    No no, no sarcasm from me, I am genuinely grateful for the advice!!!

    I'm waiting on an answer from my solicitor but I will let you know when he finally bothers to answer!
  • JulesandSandJulesandSand Posts: 6,012
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    Isn't there a limit you can gift your children and after that it becomes taxable?

    I think it's £3000 p.a. per child and any unused can be carried over to the next year but no further, therefore £6k per child in a 2 year period.

    I think you can give more than that but if the donor dies within 7 years inheritance tax is payable, on a sliding scale depending on how long after the gift is made the donor dies. After 7 years my understanding is it's tax free.

    Whether this applies to cash gifts from someone from abroad who isn't a UK citizen I've no idea.
  • Keefy-boyKeefy-boy Posts: 13,561
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    Isn't there a limit you can gift your children and after that it becomes taxable?

    If you live at least 7 years after making the gift any amount can be gifted tax free.
  • JulesandSandJulesandSand Posts: 6,012
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    No no, no sarcasm from me, I am genuinely grateful for the advice!!!

    I'm waiting on an answer from my solicitor but I will let you know when he finally bothers to answer!

    Oh OK, I just thought you had missed out the :rolleyes:

    :)
  • Keefy-boyKeefy-boy Posts: 13,561
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    I've given 2 of my children money for house deposits and I haven't been asked for ID..
    Perhaps it depends if the solictor had been made aware of the source of the funds? If the OP told the solicitor that the deposit money was coming from parents they were obliged to follow anti-money laundering procedures. If the OP had just said 'our savings' I can't imagine that the parents would have been involved.
  • Hobbit FeetHobbit Feet Posts: 18,798
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    I think it's £3000 p.a. per child and any unused can be carried over to the next year but no further, therefore £6k per child in a 2 year period.

    I think you can give more than that but if the donor dies within 7 years inheritance tax is payable, on a sliding scale depending on how long after the gift is made the donor dies. After 7 years my understanding is it's tax free.

    Whether this applies to cash gifts from someone from abroad who isn't a UK citizen I've no idea.

    This is the thing I was thinking of.

    Cheers :)
  • JulesandSandJulesandSand Posts: 6,012
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    It's an interesting conversation to have with tax advisers,

    'Now that you have paid off the mortgage and scrimped all your savings, it's time to think about giving it away.'

    :eek:

    They weren't joking either!
  • [Deleted User][Deleted User] Posts: 520
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    We would have said our savings but at the age of 21 and 22 having £23,000 savings would have looked slightly suspect we thought!
  • JulesandSandJulesandSand Posts: 6,012
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    We would have said our savings but at the age of 21 and 22 having £23,000 savings would have looked slightly suspect we thought!

    I suspect, given the size of the sum involved, it is money-laundering related.

    Your Dad's not an international drug baron hiding out on the Costa del Sol is he? ;)
  • [Deleted User][Deleted User] Posts: 520
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    Hahaha oh nothing as interesting as that!
  • Agent KrycekAgent Krycek Posts: 39,269
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    The thing is, the money is already sitting in our bank account! But they still want all the details. Which is difficult because my dad lives abroad!

    You still need to account as to where the money came from, it's all money laundering legislation. It's a pain, but your solicitor is in the right, although he has left things until the last minute when this could have all been cleared up and organised as soon as the money was transferred if they'd let you know this was required.
  • [Deleted User][Deleted User] Posts: 520
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    Thats my point, I could have given them the information at the same time as giving it to my mortgage lender, not I have to get my dad to send all the paperwork once again, something I don't think he'll be too pleased about but what can I do!
  • Agent KrycekAgent Krycek Posts: 39,269
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    Thats my point, I could have given them the information at the same time as giving it to my mortgage lender, not I have to get my dad to send all the paperwork once again, something I don't think he'll be too pleased about but what can I do!

    Some solicitors seem to take perverse delight in leaving some important detail until the very last second - no idea why, but unfortunately I've seen it happen on numerous occasions.
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