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

This is the third time I’ve used Winston Solicitors and Sidraa has been fantastic in each. Highly proactive and responsive, clear communication and moves things along quickly. Will always be my first choice in future purchases.

D. Paige, Staffordshire

Winston Solicitors (in particular, Samantha Robertson-Strong and Aishah Zahir) were absolutely brilliant. Our case was handled perfectly from start-to-finish. We always felt we were in good hands, all of our queries were responded to quickly, and each step of the process was very well explained. We would 100% recommend this firm to everyone. Thank you so much!

T. Kirkbride, North Yorkshire

Brilliant support from both Sidraa and Paulo. I would definitely use Winston Solicitors again in the future!

N. Patel, Leeds

We just want to take this time to say a massive thank you to all at Winston Solicitors. You took the pressure and stress off us throughout the process. We were always kept in the loop and knew exactly what stage we were at with everything. Each and every person we have dealt with from dropping documents off, telephone calls and emails have been amazing. Thanks again team!

R Burrows, Bradford

We dealt with Samantha for purchasing our first home, and we cannot say enough nice things about her and her team. Samantha was incredibly efficient, patient and kind, and it was a pleasure to deal with her throughout. We will absolutely be using Winston solicitors again for any future needs.

J Yong, West Yorkshire

I recently used Winston Solicitors for my property purchase, and I couldn't be happier with the service I received. A special thank you to Leasa Foster, who handled my case with exceptional professionalism, efficiency, and care throughout the entire process.Leasa kept me informed at every stage, responded promptly to my queries, and explained everything clearly, making what can often be a stressful experience feel smooth and straightforward. Her attention to detail and proactive approach ensured that everything progressed efficiently and without unnecessary delays.Thank you, Leasa and the Winston Solicitors team, for your excellent service! ⭐⭐⭐⭐⭐  

M K, North Yorkshire

I had a very positive experience with Winston Solicitors throughout my property purchase. The team was professional, efficient, and kept me informed at every stage of the process.A special thank you to Leasa Foster, who handled my case with exceptional professionalism, efficiency, and care throughout the entire process.Leasa kept me informed at every stage, responded promptly to my queries, and explained everything clearly, making what can often be a stressful experience feel smooth and straightforward. Her attention to detail and proactive approach ensured that everything progressed efficiently and without unnecessary delays.Thank you, Leasa and the Winston Solicitors team, for your excellent service!

Majuwana

Exceptional service from start to finish. Used for sale and purchase of home. Clear information, professional yet friendly and supportive throughout the process. Was kept up to date consistently via email or phone. Faultless! Excellent customer service. I would highly recommended Winston Solicitors.

Rebecca