A gifted deposit is when a friend or family member gives you money towards the deposit on a property purchase.
The person gifting the deposit will need to write a letter to confirm that they are gifting the deposit money and will have no claim over the property.
To comply with anti-money laundering regulations, the conveyancing solicitor will need to carry out various checks on the person giving you the money. These checks will include ID verification checks and checks on the source of funds.
If you are buying with the help of a gifted deposit, tell your solicitor as soon as possible to avoid delays.
Chris Salmon, Director
About the author
Chris Salmon is a co-founder and Director of Quittance Legal Services. Chris has played key roles in the shaping and scaling of a number of legal services brands and is a regular commentator in the legal press.