Source of funds question

TNGL

TNGL

TNGL

Soldato
Joined
2 Jul 2010
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I'm buying a flat and the solicitor has mentioned proof of funds and source of funds to be evidenced by a few months of savings statements and payslips, which can be done. Our deposit is about £30k in total, which is split between us.

7 years ago my grandmother died and when her share of her house was eventually sold some years later, I was left a share of it. This sat in a relative's bank account for some time because I wasn't old enough to have it yet. This was about £25k a few years ago.

Since then I have taken home at least 4-5x that amount in earnings, and so more than enough to cover my part of the deposit. My savings haven't grown 4-5x over though by any means, in fact, after some recent expenditure they wouldn't have appeared to have grown by much.

My argument is then that the £25k initially inherited by me isn't overly relevant at this point because that money would have been 'spent', given what I've earned (and contributed to my savings) since receiving it and what is left in my savings (after allowing for various withdrawals). For further perspective, my deposit is around 4 months of take-home salary, 6 months of savings let's say. Anything pay related can be evidenced by payslips.

Given this, my question is then will I be fine and justified in saying I've funded my deposit from savings and not inheritance?

I'm hoping given the deposit versus earnings and the deposit amount in the grand scheme of things (it's not a humongous six figure deposit), should mean I'm ok.

If I end up having to, evidencing the inheritance will be difficult because it never went directly into my bank account, it went into a relative's and sat there for a few years. So he'd no doubt have to dig up statements from years ago to show the amount going into his account (even longer ago) and then show it being transferred to me. As well as find the estate document/will (or whatever it is called).

So I'm trying to save myself and everybody else a headache if it can be avoided and I don't think I'm being unreasonable with my approach but would appreciate GD's wisdom.
 
You'll be fine :)

If you've got the money and can prove/explain it's not from illegal sources then the banks don't care beyond that.
 
The inheritance amount us small, more than five years back and hence immaterial in my view. You can rightly claim evidenced by savings as who is going to dredge back to try and prove money laundering or immoral earnings on each transaction.
We have moved savings around constantly over the past several years to juggle interest rates and it would take an accountant several days to follow the trail. There has been an inheritance in there some nine years back but it is now just savings.
 
As long as you have the required amount of money in the bank, which tallies up with your salary going in which you apparently have, you'll be fine. Whether you've used the inheritance money or your own money over the years is irrelevant.
 
In my experience they are just looking to see that nothing majorly iffy has given you the money. Basically illegal money or money from family. Family can be ok but there are strings and complications.
You will be fine if all the numbers on the statements make you having those savings feasible.
 
I had a similar scenario, was about to fund a deposit by myself and my parents actually silver spooned me most of it, however I just declared that I was funding it and shoved their cash in my savings account for when my roof decided to get ripped off in the storms :p

If you can account for 25k spare over whatever period is requested you will be fine, just send them your bank statements showing the overage.
 
When we moved, we had to ask the solicitor about this question.

For us, it was our exiting house sale, and a mortgage. So they just needed the mortgage in principle document.
 
You’re over-thinking it OP. Show them your bank statements and wait to see if they ask any further questions. I wouldn’t even bring up the inheritance.
 
If your deposit is 4 months take home pay then just say it's savings.

Also an inheritance from 7 years ago would now be irrelevant IMO especially if it's a small sum.

Had you inherited £100K plus then it's probably best to declare it regardless of the amount of time that's passed. As then it's likely that you might have an extremely large deposit and they would just want to make sure it was legit.

4 months take home pay. I wouldn't try and overcomplicate matters and just say it's savings.

Your payslips would verify this.
 
Overthinking it mate.

Just send your bank statements to them as they surely have requested and let them review them.

Plenty of other fraud signals will need to be raised before they really start questioning transactions at a line level.

Experience: work in the industry, kinda of.
 
Thanks for your thoughts everybody, as always, it is appreciated. I think this might be one of the many things I have thought too deeply into.
 
They are probably only bothered about money laundering.

EG raising money from an illegal source, funding terrorism etc. If your not doing that, don't worry.

It's is very unlikely, but read the conditions of your mortgage offer carefully, the lender may have put some conditions in there solicitors do additional checks (above and beyond the standard AML checks) but it's unlikely.
 
I think you'll be OK if the money is in your bank account and has been for at least a few months as evidenced in your statements. I think they are mainly checking to see if you've had any recent bumps in deposit from external sources.

Money from family is allowed but normally needs to be accompanied by a waiver from the family member who gifted it so say that it's part of a gift and the family member has no claim on the property being purchased.

I would simply give them the statements and not make a fuss over it, if you don't need to.
 
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