Gifted funds

Buying a home with the help of your parents

First time buyers are finding the only way to jump onto the property ladder is with the help of “the Bank of Mum and Dad." Parents help out their children to buy their first home by way of giving them the funds. This may be considered an early heritance with money that would be coming their way in due course and parents are happy to pass it on to their children who need it.

What to expect when parents help buying your house
Proving source of funds for your house purchase

Call us on 0113 320 5000

What happens when you buy a house with the help of your parents?

When funds for a house purchase are gifted or loaned, the buyer’s conveyancer will need to carry out additional checks alongside the usual conveyancing process.

The extra checks when house purchase funds are gifted or loaned include:

EVIDENCE: asking for evidence of identity and proof of address in respect of each giftor.
PROOF: Asking for proof of funds and evidence of the source of the funds.
IDENTITY: Carrying out electronic identity checks in respect of each giftor.
SEARCHES: Carrying out bankruptcy searches in respect of each giftor.
CONFIRMATION: Asking for confirmation of the amount of the gift.
GIFT or LOAN: Asking for confirmation that it is a gift, that no part of the gift is repayable, that each giftor will have no stake in the property, and that no giftor will live at the property. We can assist you with a gifted deposit letter
LEGAL ADVICE: Recommending that each giftor obtains independent legal advice. This is particularly important because:
- Making a gift may have inheritance tax implications.
- A gift may not be the best option from the funder’s point of view. It may be preferable for the funder to secure a stake in the property by means of a Trust Deed or mortgage, protected by an entry on the register of title. This will ensure that the property cannot be sold without the funder’s consent, unless the mortgage lender repossess it.
COMMUNICATION: Referring the matter to any mortgage lender who is involved with the property purchase.

Proving source of funds for your conveyancing

It’s a legal requirement to prove where the funds come from when you buy a property. Conveyancers have a duty to guard against mortgage fraud and money laundering and must take steps to ensure that all funds used to purchase a property have been acquired in a legal way. If all the boxes are ticked and the conveyancers have no suspicions, lenders are normally happy to lend where gifted deposits are provided, but may be more reluctant where the funder wishes to claim a stake in the property.

You can find out more about Mortgage Gifted Deposits here

Call our conveyancing team on 0113 320 5000

A ‘giftor’ is the legal term given to the person giving the financial gift. Have a look at our legal glossary of conveyancing terms for further explanations of the terms used in the conveyancing process.

To discuss buying a property with the help of gifted or loaned funds please contact our experienced conveyancing team on 0113 320 5000 or email conveyancing@winstonsolicitors.co.uk

Client feedback

Sidraa has just been amazing from start to finish. The sale was complicated one but nothing that Sidraa could not sort for us. We were selling my mothers home, so to have someone who was understanding, caring but also just damn right good at her job, really was appreciated with it being a sensitive situation for us. I would highly recommend Sidraa to anyone who needs to sell/purchase a property.

Julie S

Leasa (along with Julie and the rest of the team) were fantastic throughout the whole process of buying my first home. All of the stages from searches to completion were completed efficiently. Phone calls were answered instantly, every email I sent was replied to within a couple of hours, and Leasa was great at following up on delays from other parties in the chain. The advice I was received was consistently clear and I was kept up to date with the process throughout. Leasa was recommended to me by a friend, and I too would also highly recommend her conveyencing service.

Anonymous

Not a first time buyer but this was my first experience with Winston Solicitors and it was fantastic. Sidraa was my solicitor and she has been beyond brilliant. She has been outstanding. She has delivered an excellent service. She has dealt with inquiries promptly and efficiently and made the house transaction go smoothly. Thank you very much Sidraa and also, a special thank you to Tom McIlroy and the team at Winston Solicitors. Professional and efficient service from the start to completion, I would highly recommend them.

Anonymous

Leasa and Julie are fully professional and lovely to speak to over the phone. Very clear with the information given even to myself who has no idea about anything on the legal side of selling a property. Would highly recommend and will be using again for my house purchase.

Jack

I used Winston solicitors for the first time, to handle the sale of my property, on recommendation from my property agent. The conveyancing was done by Sidraa Razaq, who was assisted by Tom Mcillroy. I am delighted by their service. They were proessional in their communications and extremely efficient. I was kept informed at all times during the sale process, which was concluded with minimum fuss and disruption. I am very happy to recommend them and endorse their services.

Jatinder

Leasa and Julie were excellent in helping my partner and I buy our first home. They set out expectations in the first instance, and kept us updated, and it felt as though they really were on our side throughout. Thank you! - February 2025

Patrick S, Tadcaster

We were recommended Winstons by a family member who had used them.It was a fantastic recommendation.Leasa and the team supported us through our sale and purchase of a new property. We never needed to chase them, everything was done in a very timely manner and they were all extremely helpful.We have already recommended Winston's to another family member.

Hannah

I could not have asked for a better solicitor to help me through the process of buying my first house. Nothing was too much trouble and everything was so simple, clear and thorough. Incredibly professional and organised from start to finish. Winston Solicitors have made what could have been a very daunting and difficult process as smooth as it could have been and I would recommend them to anyone! Thank you Lease and team!

Peter