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Proof Of Deposit ?

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  • Proof Of Deposit ?

    Hi Everyone,

    Two questions on separate but similar scenarios :

    A) I'm currently in the process of buying a house, and as part of obtaining a mortgage, the bank requires information on where my
    down payment of £60,000 originated from.

    They have asked for bank statements showing proof of where deposits exceeding £1,000 have come from (so basically showing my monthly salary paid in and so on), it's an anti laundering measure I'm told. So I'm printing lots of statements in the process, showing Salary deposits etc.

    Now, I know that of the £60,000 my parents have given £20,000 to help me buy the house. My question is, what happens when I tell the bank that my parents have contributed £20,000 of their savings to the cause ? will it be liable for some taxation ? if so does anyone know what this tax is called, and roughly how much would it be ?.


    B) A friend of mine has sold a building they own overseas, and want to payoff the remainder of the mortgage on a house they own in the UK. I'm guessing they will also be asked to prove where this money has come from, so when they do declare that this was a result of selling a building overseas, will this be taxed ? again, I would really appreciate some info on what percentage roughly would this be, or what this tax is called so I can look it up on the internet for more information.

    Thanks in advance for any information provided

    Kind Regards,
    Veronica

  • #2
    Re: Proof Of Deposit ?

    Hi Veronica,

    A lender has no issues with you being given money from your parents. What they will probably ask for though is a letter from your parents staing that it is a 'gift' which is non returnable and they will not be charging you interest on and also that they will have no interest in the property you are buying.

    Their will also be some extra legal work required but this is a matter to be discussed with a solicitor.

    With regards to your second question Im afarid I'm not in a postion to help you. You need to seek advice from a tax specialist i.e. a suitably qualified accountant.

    Cheers,

    Ronan.
    Worldwide Financial Planning is a specialist independent provider of Large mortgages.

    Comment


    • #3
      Re: Proof Of Deposit ?

      Many thanks for your response Ronan, I'll check with the solicitors on this.

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