Gifted Deposits for a UK Property Purchase: What Lenders and Solicitors Ask For
Many buyers in the UK use money from a family member towards a deposit. That is common and accepted, but lenders and solicitors will want to see exactly where the money came from and that it is a true gift.
This Banke UK guide explains how a gifted deposit usually works, the paperwork involved, and how overseas buyers and their families can prepare so the purchase is not held up.
The Short Answer
A gifted deposit is generally acceptable if the giver has no claim on the property and no expectation of repayment. Expect your solicitor to ask for a signed gift letter, proof of the giver's identity and evidence of where the money came from. Lenders have their own rules on who may give a gift, so check before you rely on one.
What a Gift Letter Usually Says
- That the money is an outright gift, not a loan.
- That the giver does not expect repayment.
- That the giver will not live in the property and takes no legal interest in it.
- The giver's name, address, relationship to you and the amount.
- Signed and dated by the giver, often with identity documents attached.
Your lender or solicitor may provide its own form. Use that rather than a template from the internet.
Why Source of Funds Matters
UK solicitors must carry out anti-money-laundering checks. For a gift they will usually want to see bank statements showing the money in the giver's account and how the giver came by it, for example savings, salary or the sale of an asset. This applies even more when the money crosses borders. Our guide to proof of funds and source of wealth covers the general process.
Gifts From Overseas Family
- Expect extra questions about the origin of funds and any currency conversion.
- Send money from an account in the giver's own name, and keep every transfer receipt.
- Tell your solicitor early so they can say what evidence they need.
- Allow for the time international transfers take.
Mortgage and Tax Points
Some lenders limit gifts to close family or ask for the giver to confirm in writing. Overseas lenders and UK mortgages for overseas buyers differ, so ask your broker. Gifts can also have tax consequences for the giver in the UK or elsewhere, including inheritance tax rules. Take advice from a qualified adviser, especially if the giver is not UK resident.
Mistakes That Cause Delays
- Calling the gift a loan, or leaving the status unclear.
- Moving money through accounts that are not in the giver's name.
- Sending funds before the solicitor has confirmed what evidence is needed.
- Leaving the gift letter until just before exchange.
A Practical Order of Work
Agree the amount, speak to your solicitor and lender, collect the giver's documents, have the gift letter signed, and move the money in good time before exchange. See also the full cost of buying UK property from abroad.
Talk to Banke
If you would like help applying this to a specific property, contact the Banke UK team with your budget, timeline and goals. We will tell you plainly when a deal is not worth doing.
This article is general information, not legal, tax or financial advice. Rules, fees and procedures change, and we have deliberately left out figures that depend on them. Confirm current details with the relevant authority or a qualified professional before you commit money.