MG Legal Solicitors 
Longridge: 01772 783314 Garstang: 01995 602129 Lancaster: 01524 581306 Lytham: 01253 202452  

Can Someone Gift Me A Deposit To Buy A House? 

Our Property Solicitors in Lancaster, Longridge and Garstang, wish to stress that new buyers don’t need to worry about being given a gift of money however there are some important steps you must take in order for your transaction to go smoothly: 
- Your local Solicitor needs to know about the gift of money. There are certain legal checks which will have to be carried out such as enquiries on the source of funds to ensure the anti-money laundering requirements are met. These such checks must be carried out in every transaction. 
- Tell your mortgage advisor from the outset that you are buying with the help of a gift, your mortgage lender will have to take this into account before providing you with a mortgage offer. 
- Speak to the person who is gifting you the money so that they understand what will be required of them. They must be aware that the solicitor will need to see bank statements and also evidence of their identification. You must also clarify whether the money is to be a pure gift or a private loan. 
- Once a decision has been made as to whether there is to be a gift of a loan of monies your solicitor will need to establish whether the person providing the money is expecting to hold any legal interest in the property. 
Our property solicitors will advise the person providing the money that they should seek independent legal advice to ensure that they are aware of the implications of giving money rather than loaning money. That said it is usually for the person providing the money to make a decision as to whether they wish to seek the independent legal advice unless the Mortgage Lender insists upon it as a requirement. 
Your Property Law Solicitor in Preston will also ask your giftor to complete a declaration to state that they have no interest in the property, that they will not live at the property and that they do not intend to claim an interest in the property at a later date. The reason for this is because the Mortgage Lender need to know that their interest is secure. The Lender won’t want to risk a challenge of ownership of the property in the event of repossession. 
The gift of money cannot simply be transferred to the home buyers account months or weeks before the transaction has begun as this will come to light during the conveyancing transaction. Evidence will be required an ultimately this will delay the process. 
For some people this process of checking bank statements can feel intrusive however if this process must be followed failure to do so will have serious legal consequences. 
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What if I am purchasing with a gifted deposit? 

Where purchasing with a gifted deposit, you should alert your conveyancing solicitor, who, in turn, is required to report the same to your mortgage lender, with your consent. 
The concern of the lender is that their security over the property is going to be adequately protected. Where there is a gifted deposit element, they, therefore, require confirmation that the gift is, indeed a gift, and is non-repayable, nor is it to create an interest in the property that could endanger the lender’s interest. 
Your conveyancing solicitor is required to provide confirmation of the following: 
- That the gift is, indeed a gift; 
- That the individual providing the gift has been recommended to take independent legal advice on the matter; 
- That the individual providing the gift is not bankrupt; 
- That the gift has been forwarded out of legitimate funds; 
- That the identity of the individual supply the gift has been verified. 
The lender then has the opportunity to consider the gifted element, and decide whether they are still agreeable to offering the loan. As you can see, it is, therefore, imperative to make your conveyancing solicitor aware of any gifted element, to ensure there are no delays at a later date. 
For a property transaction to run smoothly you need our expert residential conveyancing Solicitors who can be contacted via or by calling 01995 602 129 allowing you to focus on enjoying your new home as quickly as possible. 

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