Any Solicitors on here Legal HELP! needed

[milner993]

Im in the process of purchasing my first house (very stressful) I have a large deposit made up of my own personal savings and my parents are giving me an extra £10'000 this is not a loan and they do not want it back it's a gift.

within the information received from the solicitors is a section on gifted deposits, and the party gifting the deposit will have a bankruptcy search made against them at a cost of £2.
the section goes on to mention about an insolvency Act policy.
which has a sliding scale cost associated with it from £170.

my question is because my parents are giving me the money and im not paying it back in anyway (maybe a few cups of tea) does the Insolvency Act policy apply to me and I should declare the money I'm receiving as a gift?

Any help would be greatfully received

[buzzsaw]

If your parents are giving you the money then it's yours. Why would you even mention this to the lender?

[PurpleMoonlight]

If someone is made bankrupt the official receiver can go after any recent gifts they made, up to three years previously I think but don't hold me to that.

The insurance policy is to cover this possibility. If you are confident it will not happen then don't effect it unless the mortgage provider insists upon it.

[Maryben]

buzzsaw said:

If your parents are giving you the money then it's yours. Why would you even mention this to the lender?

Mortgage lenders normally want proof of where the deposit is from. It would effect affordability if it was a loan that was going to be paid back. Also lump sum entries into a bank account are part of the adviser, mortgage lender and solicitors money laundering checks.
Ben

[milner993]

Maryben said:

It would effect affordability if it was a loan Ben

It's not a loan so am I rite not to declare it?

The Information I have been sent by my solicitors is very misleading I haven’t told them about the money from my parents because I don’t believe its any of their business where some of the money I have came from, if the money I'm to receive was a loan then yes I can understand why this policy is there.
My parents have no mortgage on the property they own and are financially stable so there is no chance of becoming bankrupt.

I understand that there are a number of checks that a solicitor will make to check where the money has come from to prevent money laundering but under inheritance law I believe I’m allowed to receive £6000 a year without any tax or legal problems attached.
I think I’m rite not to declare the money as it’s now mine.
Am I rite?

[PurpleMoonlight]

It's right, but no you are wrong.

Just be truthful.

[milner993]

PurpleMoonlight said:

Just be truthful.

This is what I'm trying to do, I just want to avoid any unnecessary costs by declaring the wrong information.

[voicey]

Just be aware that if you say the money is yours then you'll have to prove the provenance. I bought a house last year and most of the deoposit came from the sale of a flat but the remainder was savings. I had to prove where these savings came from, including letters from my employer confirming my bonus and savings account statements. It was a real ball ache.

[milner993]

I spoke with my solicitors again yesterday taking everyone’s comments on board, however I was still extremely annoyed and confused at having to pay £170 for an insurance I just don’t need, so I asked the solicitor if the indemnity insurance was a mandatory thing and to my surprise after all the babble Id been given the answer was no! As of last week it was which I will take with a pinch of salt.
I couldn’t tell you if the solicitors receive a commission from this insurance policy but I think they must do.

Thanks for all the comments

Me = Win Solicitors = nil

[Burnham]

voicey said:

Just be aware that if you say the money is yours then you'll have to prove the provenance. I bought a house last year and most of the deoposit came from the sale of a flat but the remainder was savings. I had to prove where these savings came from, including letters from my employer confirming my bonus and savings account statements. It was a real ball ache.

Ive not heard of this before. Never have i been asked where a deposit has come from when buying, and ive just bought my 4th. With all the money laundering hype its surprising ive not been asked come to think of it.

[milner993]

what has really annoyed me was that ive been made to feel like the insurance is mandatory and the mortgage can not proceed without it, and I'm not the only one to be misled, my colleague has now instructed his solicitor that he won't be taking this policy.

This insolvency policy has it's place I'm not disputing that fact but everyone needs to be given clear, relevant and accurate information this is isn't even miss selling because I can still say no thank you as far as I'm concerned this is theft and abuse of their position.

[milner993]

what has really annoyed me was that ive been made to feel like the insurance is mandatory and the mortgage can not proceed without it, and I'm not the only one to be misled, my colleague has now instructed his solicitor that he won't be taking this policy.

This insolvency policy has it's place I'm not disputing that fact but everyone needs to be given clear, relevant and accurate information this is isn't even miss selling because I can still say no thank you as far as I'm concerned this is theft and abuse of their position.