[e3silversurfer]

Hi guys, just a general question. 
When purchasing a house, is it a norm that parents tend to pay a bit of the deposit for a first time buyer?? 

If yes, is it normal/usual practice for the solicitors to ask for the parents last 6 months bank statements to see if the money is from "money laundering"?? 

Lastly, is my solicitor trying to take the piss??

[pumanurse]

Our parents had nothing to do with our house buyng at all.

Why should anyone question the source of the income for the deposit??? If they were paying the ongoing mortgage I could understand them wanting proof of a steady income. Are they guarantors for your mortgage?

[e3silversurfer]

no, they are not. they are just the solicitors who are doing the conveyancing for us.

[pumanurse]

I think you misunderstood me Elvin, Are your parents guarantors for your mortgage?

[pumarv6]

Not heard of statements being asked for when a cash gift is involved. General info on the regulations here.

[e3silversurfer]

@pumanurse

no my parents are not guarantors for my mortgage. they just gave money for the deposit. I am paying the monthly mortgage

This post has been edited by e3silversurfer: 11 March 2009 - 02:15 PM

[pumanurse]

I can't really see why they need any info about your parents, you are buying the house it's your reliability and ability to pay the mortgage thats the issue

[e3silversurfer]

parents gave me £xx,xxx for a deposit and the solicitors want to know how it came by for money laundering purposes basically.... not very sure if this is a normal practice...

Is there a proper channel for going about getting this checked??

[BenF]

my parents never gave me anything either, although they did lend me £xx,000 for one year until an investment matured

my solicitor never questioned it although I told him where I had got the money from

maybe in your case it is because you have presented the solicitor a personal cheque from your parents? I paid the money from my parents into my own bank account and then paid my solicitor a single cheque (for the biggest sum I have ever written a cheque for!)

[Sex Kitten]

the law has now changed and if you open a bank account they now have to check the source of the money - i imagine as the rise in drug related crimes etc rise

[danellis]

...and then paid my solicitor a single cheque (for the biggest sum I have ever written a cheque for!)

I hope you remembered to put "only" on the end

On a more serious note, the law, or its interpretation, regarding money laundering has been tightened significantly in the last 12-18 months. I know you have to present two forms of ID if you handle your tax return through an agent now.

Instictively it sounds a genuine requirement, but if you're unsure you should be able to check by calling your local Citizens' Advice Bureau.

[e3silversurfer]

thanks for the advise... what I am thinking is there should be a way around the 6 month bank statements.

Not because I want to avoid and cheat the system... but what if the money was saved in a biscuit tin (which most chinese do in china) and then brought to the bank to transfer to us... that is not going to look very legitimate right?

And I cannot use the money that is being saved like this??? what sort of rubbish ideology and theory is that??

[Dogweed]

Yeah - like Sex Kitten et al said, in 2003 a new law came into force (<sarcasm> thanks a lot Labour, we need more pahleez </sarcasm>) that deals with potential money laundering, so anything involving large-ish sums of money, like house purchasing, need to satisfy its requirements, especially with solicitors involved.