House purchase / Money Laundering
Discussion
I'm hoping buy a house shortly for cash. The cash is from a legitimate source, and the tax is all squared away, but the cash came with a Confidentiality Agreement.
Presumably, I'd be expected to tell one (or both?) solicitors where the cash came from, but just how much do I need to tell them?
If I'd spent ten years saving for a deposit, I wouldn't need to justify every payment into my piggy bank, but I'm not sure that just calling it 'savings' will work in my case.
Presumably somebody here has some experience or expertise in this?
Presumably, I'd be expected to tell one (or both?) solicitors where the cash came from, but just how much do I need to tell them?
If I'd spent ten years saving for a deposit, I wouldn't need to justify every payment into my piggy bank, but I'm not sure that just calling it 'savings' will work in my case.
Presumably somebody here has some experience or expertise in this?
I doubt that the solicitors would care.
The legitimacy of the cash is ensured by the holding bank.
Surely the worst that would happen is that the solicitor would feel obliged to report you to the appropriate authorities - which your bank probably have already as the amount is over £10k
The legitimacy of the cash is ensured by the holding bank.
Surely the worst that would happen is that the solicitor would feel obliged to report you to the appropriate authorities - which your bank probably have already as the amount is over £10k
DocJock said:
HMRC will want to know if any part of it was a gift.
It wasn't, and as I've said, the tax is covered (correctly). They know the details but the Conf. Agreement allows for that.In practice, it is unlikely to be a problem, but it raised a question that I couldn't answer for myself.
garyhun said:
I've purchased many houses for cash and never been asked by the solicitors to account for the cash. There may be a question about "source of funds" but that's about all I remember.
Precisely. I'd sooner not disclose the source, because of confidentiality. As I said, in my case, it probably won't be an issue, but it'sa question nevertheless.What happens if you win the lottery, opt for no publicity, and then have to tell your solicitor where the money came from? A secret is only a secret if you don't tell anybody.
garyhun said:
I've purchased many houses for cash and never been asked by the solicitors to account for the cash. There may be a question about "source of funds" but that's about all I remember.
I take it you mean bought without a loan, as opposed to taking a couple of poly bags full of readies into the brief's office........like you might have done 20 or even 15 years ago???I've paid off two or three mortgages in the past, and the question was easily answered with "it's savings". That may not wash this time, and I don't want, if asked, to say "I'm not allowed to tell you where it came from"
I do want to buy one of the houses on my list, and I don't want to raise a mortgage, so I guess I'll have to bite the bullet.
I do want to buy one of the houses on my list, and I don't want to raise a mortgage, so I guess I'll have to bite the bullet.
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