Our solicitors provide independent legal advice for gifted deposits where mortgage lenders require confirmation that funds are provided as a genuine gift with no ownership interest in the property.
A gifted deposit is money provided to help someone purchase a property, usually by a parent or close family member. Mortgage lenders often require confirmation that the funds are a genuine gift and that the person providing the money will not have any legal interest in the property.
Because gifting money for a property purchase can have legal and financial implications, lenders may require the person providing the funds to obtain Independent Legal Advice (ILA) before the transaction can proceed.
Our solicitors explain the implications of providing the gift and issue the confirmation required by lenders so that the property transaction can proceed.
Why Independent Legal Advice Is Required for a Gifted Deposit
Mortgage lenders require Independent Legal Advice to ensure that the person providing the deposit understands the legal consequences of making the gift.
This typically confirms that the person gifting the funds:
- Understands the money is being provided as a true gift
- Will not acquire any ownership rights in the property
- Will not expect repayment of the gifted funds
- Is providing the money freely and without pressure
Lenders require this confirmation to ensure that there are no future disputes or claims that could affect the property or the lender’s security.
After the advice has been provided, the solicitor will issue a certificate or written confirmation of Independent Legal Advice, which the lender or conveyancing solicitor may require before the transaction can proceed.
Our Gifted Deposit Independent Legal Advice Service
Our solicitors regularly advise individuals who are providing gifted deposits as part of property transactions.
During your appointment, we will:
- Review the gifted deposit declaration or lender documentation
- Explain the legal implications of providing the gift
- Confirm that you understand you will have no legal interest in the property
- Answer any questions you may have before signing the declaration
Appointments are available in person at our office or remotely via secure video call (Zoom). Where transactions are urgent, we may also be able to offer same-day appointments to help avoid delays in the conveyancing process. Once the advice has been completed, we will issue the solicitor’s confirmation required by your lender or conveyancer.