If you're using a gifted deposit to buy a home, your solicitor must verify the gifter's identity, the source of funds, and receive a signed declaration letter. Average additional solicitor cost: £183.
If you are buying a property with a gifted deposit, there are checks that your solicitor will need to do. These include ID checks, proof of the source of funds, and a gifted deposit declaration.
A gifted deposit is a financial gift which covers part or all of the deposit for a home. It is usually supplied by a family member. With many struggling to save for a mortgage deposit, these have become increasingly common.
Key Requirements
These checks are completed by a conveyancing solicitor — whether only part of the deposit is a gift, or the whole deposit is gifted. The checks are to ensure the gift is legitimate and above board, meeting the solicitor's internal Anti-Money Laundering (AML) procedures.
Solicitors must check the gifter's ID and the source of funds. If you're using a gifted deposit, inform your solicitor early — it's part of the conveyancing process from the outset.
The gifted deposit declaration is a letter written by the gifter. It must be in the correct format to meet lender and solicitor criteria. The letter must:
Most lenders have their own template for this letter. Your solicitor will advise you on the exact format required for your lender.
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Compare NowThe gifter needs to give your conveyancer documents to prove their identity. These typically include:
Primary ID (one of)
Proof of Address (one of)
Your solicitor (and your lender) will need to verify where the gift money comes from. This is a legal requirement under Anti-Money Laundering (AML) regulations. Acceptable evidence typically includes:
💡 Overseas Transfers
If the gift is coming from overseas, additional checks will be required. Your solicitor may need extra documentation about the international transfer and the gifter's financial position. This can add time to the process — flag it early to avoid delays.
The additional solicitor's fee for handling a gifted deposit is typically around £183 based on platform data. This covers the extra identity verification and documentation work required. Most solicitors list this as an add-on to the standard conveyancing quote.
If you're using a gifted deposit, make sure this fee is included or quoted separately in your conveyancing breakdown — don't be surprised by it appearing at the end.
Different mortgage lenders have slightly different requirements for gifted deposits:
Always check your specific lender's requirements with your mortgage broker before proceeding.
Most commonly parents, grandparents, or other close family members. Many lenders restrict gifted deposits to direct family only. Friends or non-family members may be allowed by some lenders but this is less common and requires additional checks.
Not negatively, as long as the gifter confirms it's a genuine gift and not a loan. If it's treated as a loan, lenders factor the repayments into your affordability assessment. Always declare a gifted deposit truthfully — failure to do so is mortgage fraud.
Gifted deposit checks are part of your solicitor's AML obligations. They're required to verify the source of all funds involved in a property purchase, including gifts. The gifter's ID verification and source-of-funds evidence are the core elements of this compliance check.