Source of Funds Requirements

This is by far the most common source of funds that we come across. It is important that you are able to evidence income that justifies the amount saved, whether from employment, rental income, or pension. For example, an individual who earns £1000 per month is unlikely to accrue savings from income of £300,000. We will generally require

• Bank statements that evidence that you have the full amount of funds. Funds may be in more than one account, including a Help to Buy ISA, and we will need to see bank statements for each account
• Evidence of the source of regular income into those accounts eg 3 months’ payslips if from employment for example
• Bank statement evidence (usually 3 months) that shows that regular pattern of income being received and, if transferred to a savings account, evidence of funds being transferred either regularly or accruing in a current account and then being transferred to savings

Help to Buy ISA (Property Transactions)

There is a specific process for claiming the Help-to-Buy Bonus and therefore it is imperative that you inform us from the outset if you have a Help-to-Buy ISA.  Failure to do so may mean that we do not receive your bonus in time for the completion date, which may mean we are unable to complete your purchase.

If we are acting in the sale of your property and you are using the proceeds of this sale to fund your purchase, we will not require any evidence of source of funds from you. However, if you have already completed your sale, or your funds are from a transfer of equity on which Thompson Smith and Puxon did not act, then we will require

• A Bank Statement showing the funds arriving in your account. If the statement clearly shows the funds arriving from a Solicitor’s practice we will not require any further evidence. If the statement is not clear we will need correspondence evidence / completion statement from the firm that acted in the transaction

If you are purchasing a property with a mortgage then it is likely that we will also be representing the lender. If this is the case, we will receive a copy of your mortgage offer directly from you lender and will not require any further information from you.

Sometimes a lender will instruct a different firm of Solicitors. If this is the case we will liaise with them and again, we will not require any further evidence from you.

If however you are re-mortgaging a property we will need to see evidence of the re-mortgage paper work and evidence of the funds arriving, from the lender, in your bank account.

Please provide written evidence from the Solicitor’s practice handling the Estate of the Deceased and evidence, by way of a bank statement, of the funds arriving in your bank account from that firm of Solicitors. If the Probate was conducted privately, without the assistance of a firm of Solicitors, we will require the following evidence

• Grant of Probate
• Copy Will
• Evidence of funds being received into your bank account from an executor named in the Grant of Probate

Where funds are from a divorce settlement we will require

• Information regarding where the funds are currently held – this may be a Bank statement
• Name of solicitors acting/ who acted for you
• Copy of any financial Court Orders or correspondence from the solicitors confirming the settlement.

If you received a lump sum bonus or redundancy payment from an employer or a share dividend from a company you have shares in, we will require one of the following

• A payslip showing the payment
• A letter from your employer / company detailing the bonus/redundancy/dividend payment
• A bank statement clearly showing the funds being paid into your account

If you are selling / have sold shares or premium bonds to fund your transaction we will require

• Up to date, written evidence of their value at sale and details of how and when you acquired the asset originally
• Evidence of the sale / disposal of the asset
• A bank statement showing evidence of the funds from the sale arriving in your bank account

If the funds have been received following the maturity of an insurance policy or as a lump sum pension payment we will require

• A letter from the pension company / insurer regarding the amount (to be) released to you
• A bank statement showing evidence of the funds being paid into your account

If you are receiving a gift or gifts, perhaps from family members of friends we will need you to supply the following details for each gift that you are receiving

• Amount of the gift
• Full name of person gifting
• Their address
• Relationship to you
• Where the money is currently held, for example, in a UK Bank Account

Once we have this information, we will need to write to the individual providing the gift to obtain their confirmation that the funds that they are providing you with is a gift. We will also require them to provide us with

• Evidence of their identity, as detailed here.
• Evidence of their source of funds e.g savings or inheritance
• If you are purchasing a property with a mortgage, your lender will, in most cases, require a letter from the person gifting, waiving any rights in the property. We will supply a template letter for signature if required.

If you are receiving a loan from a family member or friend we will need you to supply the same information as detailed above under third party gifts, for each person who is loaning you any money.

We will also require them to provide us with

• Evidence of their identity, as detailed here
• Evidence of their source of funds e.g savings or inheritance
• A copy of the loan agreement that has been put in place
• If you are purchasing a property with a mortgage, we will be required to inform your lender about the additional loans that you are receiving.