Gifted Deposit Letter

A gifted deposit letter is required during the conveyancing process to confirm that the money being given from a parent to their children is a gift and not a loan. The greatest challenge however is getting the right information into the letter to satisfy both the solicitors and the mortgage lender.

All too often parents gifting money to their children will send emails to their children to pass on to their solicitors which contain a simple statement declaring that the money is a gift and not a loan. Sadly when the solicitors receive these emails they invariably tell the children to inform the parents a simple statement like this isn’t sufficient for the purposes of the mortgage lender and that the parents have to send the information in the correct format.

If you're using a gifted deposit to help buy a property with someone else, do you need a Deed of Trust to protect your interest in the property you're buying? Click on Basic Deed of Trust to find out more.

Read on to find out more about gifted deposit letters and to see an example of one.

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*Approved for conveyancing-related gifting purposes by Solicitors

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Gifted Letter Content – Overly officious or absolutely necessary?

Sadly the declaration within the letter needs to contain more than just a one liner in relation to the gift. The main reason for this is that your solicitor is under a duty to advise the mortgage lender of the gift. The mortgage lender needs to be satisfied that the money is a gift and that the person gifting has no legal rights to it, nor can they request for the gift to be repaid.

Another issue to be covered within the gifted deposit letter relates to the solvency of the person gifting. The reason for this is that if the person gifting becomes bankrupt within 7 years of it being gifted, then the gift could be clawed back to settle the liabilities due.

If the person gifting is expecting to get the money paid back then this isn't a gift and it is a loan. Read more about this here - Is it a gift? or is it a loan?

A Gifted Deposit Letter Example

* Approved for conveyancing-related gifting purposes by Solicitors


I [NAME OF PERSON/s GIFTING] hereby confirm and declare as follows:

1.     I am assisting my son/daughter [FULL NAMES OF SON/DAUGHTER] in their purchase of [PROPERTY ADDRESS]

2.     I am gifting to him/her the sum of [£XXXX]

3.     I understand that by gifting the same to him/her that my action is a gift of love and affection.

4.     I declare that the gifted deposit is unconditional, non-repayable and does not give us any rights over the property and will not prejudice the security of his/her Mortgage Company [NAME OF MORTGAGE LENDER]

5.     I hereby confirm that at the date of this Declaration I am solvent, my assets exceed my liabilities and I have no reason to believe that I will become bankrupt.

I sign this Declaration in full acceptance of the above conditions.


If more than one person gifting:

Witnessed by:

Witness signature:

Witness Name:
Witness address:

Witness occupation:

Make sure that if the gift is coming from a mum and a dad that you put both your names and change the I to WE. This is often a mistake made when sending a gift from a joint account – both people who own the account must sign this gifted deposit letter.

The witness cannot be a family member and should be someone who is not a party to the arrangement. A family friend or neighbour would be the best type of witness. If you are overseas then the witness should be the notary public or solicitor used to verify your ID (see details of ID verification below)

Proof of Funds

(This may differ depending on which solicitor you use and how the monies have accrued)

These are potential reasons for how the money you are gifting has been accrued. Please provide appropriate information for each of these as evidence:

1.     Remortgage or Sale of Property - Completion statement from a Solicitor or re-mortgage company, confirming that the monies are from a re-mortgage or a sale.

2.     Retirement or Redundancy - Letter from your employer, confirming that the monies are in relation to either early retirement or redundancy.

3.     ISA Premium – A Bond Certificate, if the monies are from an ISA or premium bond account.

4.     Inheritance - Letter from a Solicitor confirming the amount sent to you from the probate estate.

For all of the above you will also need to provide a copy of your bank statement showing the receipt of the funds and confirming that the bank account is in the name of the person/s gifting.

ID for Person Gifting

(This may differ depending on which solicitor you use and where the gifting person lives)

With identity (ID) checks in the UK the solicitors can use online tools to confirm the ID of a person based on a copy of their proof of address and proof of photo ID at a cost of £8 per name. Each person gifting the deposit must provide certified copies of the following:

One of the following Photo IDs:

  • Passport
  • Driving Licence
  • National ID

One of the following proof of addresses:

  • Utility
  • Bank Statement (always useful to provide the same bank statement the money is coming from)

Documents can be certified by a solicitor, accountant, doctor or using the Post Office’s certifying service.

If the person gifting the deposit is overseas then each of the ID documents needs to be taken to a Notary Public to be certified. The Notary will verify the copies are a true likeness of the originals and that the person is a true likeness to the photo ID. The notary will sign the copied documents and add their unique seal.

The Gifted deposit letter, proof of funds evidence and certified ID must be sent in hard copy by recorded delivery to your solicitor – scanned copies will not be acceptable on their own.

A gift but not from parents

Gifts that don’t come from parents raise issues with mortgage lenders so you should declare this to your mortgage lender at the earliest possible opportunity. The rule of thumb is that if your mortgage lender has consented to the gift then it’ll be fine.

*First Time Buyer Specialists - Fixed Fee – No Sale No Fee – On all Mortgage Lender Panels

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