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 and Paulo were brilliant and faultless. We have gone through the conveyencing process twice before and found the whole experience very frustrating. It was refreshing and very pleasing to find that the team at Winston made sure we were fully informed as things progressed, responded promptly to all of our requests and were friendly and approachable throughout. Highly recommend.

Anonymous

I highly recommend the services by Winston Solicitors. My solicitor went above and beyond to complete the conveyancing process during my house purchase. She always remained accessible and was available to answer my queries at all times. Her instructions were always crystal clear and i was continously updated to ensure i am aware of any progress. Winston Solicitors should be your first choice if you are wanting to work with highly professional individuals.

Nusrhat

Really efficient and helpful, especially Amanda and Olivia. This was a whole new experience for me and other people gave me much longer dates for expected completion whereas Olivia managed to complete everything in a comparatively quick time even when unexpected situations arose, thank you.

Anonymous

Really helpful and responsive. Used them for my remortgage which included taking someone off the deed and making the mortgage for me only and it was all very smooth and I felt very well informed throughout. Felt like good value for money. Would use again.

Katrina

Fantastic experience!After a couple of previous houses unfortunately fell through over the last year, alongside a few other issues, we ended up dealing with four different conveyancers over a two-year period. Our frustrating experiences with the first three corporate firms are what ultimately pushed me to go local and choose a smaller company and I am so glad I did!The entire process with this firm was incredibly smooth. Michelle replied promptly to every single query and the service was still very reasonably priced. Even our estate agents remarked on how impressed they were with Michelle's quick responses and ease of communication.Whenever I had a question, I knew it would be answered often on the exact same day via email and we received constant, transparent updates as milestones were completed. I vastly preferred this direct, human communication over the overly complex online portals I had to use with past firms.I would highly recommend Michelle and this firm to anyone looking to buy a house, especially first-time buyers who want a stress-free experience. Thank you so much!

Miss Dawson

Amazing service from start to finish, Our questions were answered quickly and there were no holds up from our side of the house sale what so ever. Would 100% recommend and use in the future. Special thank you to Samantha & Aishah.

Robyn

We were really impressed with the service that we received from both Leasa and Julie. The process was efficient, communication was great and we liked the online portal where you could see the progress of the sale/purchase easily. Despite some delays from our buyer’s solicitor, both Leasa and Julie seemed to push this daily for us to complete on time. We would recommend Winston’s to others and will use them in the future if we move again!

Charlotte

As first-time buyers, we couldn't have asked for a better solicitor. The whole process was explained clearly from start to finish, and every question we had was answered promptly and professionally. They kept us updated throughout, making what could have been a stressful experience feel straightforward and manageable.Michelle's attention to detail, efficiency, and friendly approach gave us complete confidence every step of the way. No question felt too silly! We would highly recommend their services to anyone, especially first-time buyers. Thank you for helping us buy our first home! Thanks, Michelle / George & Annie :)

George