Gifted funds | Winston Solicitors UK

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.

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.
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.

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

Contact Sidraa today

Sidraa Razaq

Conveyancing & divorce solicitor

0113 320 5000

@email

Winston Solicitors reviews

We have been absolutely delighted with the conveyancing service provided by the team at Winston Solicitors. Right from the start they were friendly and explained things clearly. They also acted with speed and efficiency and kept us up to date with where we were in the process which was so helpful.

Mr & M
As a first time buyer, there was heightened nervousness around my purchase, however Samantha put me at ease instantly and was a reassuring presence. Samantha maintained excellent communication throughout, was responsive to emails, receptive to feedback, and worked at pace.

The online tracker was also a useful tool to monitor progress.

Dr W
From Start to Finish the sale and purchase went along perfect a last minute hiccup was dealt with professionally and informatively
Thank you to Sidraa and her team for a perfect transaction .

Timothy
Sam was always very prompt in answering any queries, helpful, polite,and courteous. I would have no hesitation in recommending Winstons Solicitors to friends.

Margaret
Unbelievably good service. From start to finish the process was smooth and exactly what we hoped it would be. Sidraa and Aisha in particular answered all our queries promptly and kept us updated throughout so we never felt confused or left in the dark.

Samair
Winston Solicitors, in particular Sidraa Razaq, were incredible throughout the process. They were very professional and friendly. The whole process was stress free and went smoothly and I honestly believe it is due to Sidraa working on our file. Communication was excellent and we were well informed at every step of the process.

Mariam K
From our first telephone enquiry to the call of completion, Winston Solicitors have been a pleasure and delight to deal with. Leasa Foster, the Conveyancing Manager, and her assistant, Julie Smith, were both highly knowledgeable, approachable and personable. Nothing was too much trouble and all questions and enquiries were dealt with swiftly.

Christopher
Leasa from Winstons was extremely efficient when helping us with our house move. She was very easy to contact and acted promptly with enquiries and any questions we had. Despite completion taking nearly 6 months (due to delays further up the chain), Leasa’s efficiency helped us to eventually complete. Overall, I would recommend

Miss L
We Would highly recommend Winston Solicitors, we had Samantha deal with all our conveyancing during the purchase of our first property. She was very clear in her communications and outlined our requirements, we found her very efficient and we were impressed with turnaround times and how smoothly the process was from start to finish.

Paul
We have been so impressed by Winston Solicitors from start to finish. As first time buyers, we have felt so supported by Samantha and her team throughout and they have made the process much less stressful. Every query or email was always answered promptly, could not fault the communication whatsoever.

Jennifer
I used Winstons Solicitors for remortgaging my house. My solicitor was Sidraa Razaq and her customer service was incredible. From start to end of the process she kept me well informed, making the whole process very simple and easy to understand. The whole process was also very efficient and completed earlier than I thought it would.

Shahnaz K
As I am overseas, all interaction was done remotely. Samantha and Joe Kept me informed at every stage of the process and were always quick to respond to e-mails. If needed phone calls were always answered. Great service throughout the sale of my property, would highly recommend.

Anonymous
Best solicitors I have ever used. Winston Solicitors are very understanding of your needs and ensure you know exactly what is happening and going to happen. I highly recommend them.

Lynn
Highly recommend Winston Solicitors. Leasa and her team were amazing from start to finish. Any question I had was answered quickly and I was kept up to date with each step of the process. Great experience overall.

Ellie
Winston Solicitors were both affordable and extremely precise with their services.

Mr Rhall
Wonderful 5 star service as usual from Sidraa

Mrs Nelson