Conveyancing Langport

A gifted deposit refers to a situation where someone, usually a family member or close relative, provides a sum of money to contribute towards the purchase of a property. Lenders may have specific requirements regarding gifted deposits, which are important to consider. 

 

Here's an explanation of gifted deposits and lender requirements:

 

A gifted deposit is a financial contribution towards a property purchase that does not need to be repaid. It is typically given by a family member or close relative and is intended to help the buyer with their property purchase.

 

Lenders often have specific criteria that must be met:

 

(i) Gifted Deposit Declaration: Lenders usually require a formal letter or declaration (legal statement) from the donor (the person providing the gift) stating that the deposit is a gift and does not need to be repaid. This declaration may also specify that the donor has no interest in the property.

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(ii) Relationship to the buyer: Lenders may require proof of the relationship between the donor and the buyer. This can be in the form of identification documents or a statutory declaration confirming the relationship.

 

(iii) Gifted deposit source: Lenders often require evidence of the source of the gifted deposit. The donor may need to provide bank statements or other documentation showing that the funds are genuinely available and legally obtained.

 

Please also note that the donor will be subject to ID, proof of address and source of funds verifications.

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If the donor does not live in the UK, a Notarised copy of the passport will be required which will verify that the copy is a true likeness of the original documents and the donor is a true likeness to the photo ID. The source of funds evidence will also need to be officially translated unless they are in English.