4 top tips for buying a home with a gifted deposit
According to recent research 1 in 20 homebuyers have relied on a gifted deposit to purchase their home.
First time buyers are increasingly turning to the ͚bank of mum and dad͛ and relying on cash gifts to fund part or all of their deposits. But what will you need to do if you͛re using a cash gift to buy your home?
Are you buying a home with a gifted deposit?
Without carrying out the right legal checks, using a gifted deposit to buy your new home can slow down the purchase process.
That’s why our conveyancing experts have put together 5 top tips to for buying a home with a part or full gifted deposit.
Let your conveyancer know you’re using a gifted deposit
You should tell your conveyancer that you’re using a gifted deposit as soon as you possibly can.
This will allow your conveyancer to carry out legal checks in order to comply with anti-money laundering laws. If these aren͛t carried out early, it could lead to delays further down the line.
Make sure you have evidence that the money was a gift
The person who is giving the gift will need to provide written consent to confirm that money is a true gift. This will also need to confirm that they have no legal interest in the property.
Here at Residential Matters, we will make sure that the necessary paperwork is signed and ready to avoid any delays during this process.
Have proof of ID ready to go
It is vital to make sure that the person giving the gift will be available to provide proof of ID. In some cases photocopies will not be accepted to so they should make sure they have their proof of ID ready to go.
Ensure you have proof of funds
As part of anti-money laundering checks, your solicitor will need to check the bank statements of the person providing the gift and the person receiving it. This is to make sure that the money used for the deposit has been earned legitimately.
At Residential Matters, we will provide advice as to whether you will need a single bank statement or more detailed evidence of how the money was accrued.
Get expert legal advice on using a gifted deposit
For expert legal advice on the implications of using a gifted deposit to buy your home, speak to the dedicated solicitors at Residential Matters today. Call us today on 01282 695 400 or simply click the button below to get your free conveyancing quote online.