Skip to main content

Source of Funds Check

Why am I being asked about this? 

We are required by the anti-money laundering legislation to check where the money is coming from to buy the property.  This can be from savings, mortgages and gifts from relatives, inheritances etc, and this is called a “source of funds” check.

We are also required to check that your general income and wealth is consistent with your lifestyle and the value of the property you are buying.  This is called a “source of wealth” check.  We will ask questions about your salary, request bank statements and ask you to give details of any family inheritances.

Please do not think that this is an invasion of your privacy, as all conveyancers have to do this.  How much information we need to look at depends on the circumstances i.e. the amount of money involved and the value of the property.  Also, (where appropriate) the position in society or business of you, your associates or any members of your close family, will need to be looked at in detail.

Your mortgage lender will also expect us to check some details, to make sure that the information you gave them on your mortgage application is accurate.  For example; your lender will need to be told if you are not providing all the money yourself.

It is important that you tell us about this in plenty of time before we start work, so that we have time to get the confirmation and documents that are needed.

 

Our Obligations:

We have to check how you are going to pay for your house because: -

  1. Anti-money laundering legislation requires us to check where you are getting the money from to buy your new home.  This is usually a combination of mortgage, savings, gifts from relatives and the money from selling your previous house.
  2. Any mortgage lender will also want to check what you have told them when you applied for your mortgage is correct.  They would particularly want to know that there are no other loans being used to buy the property.
  3. We need to make sure that you will have enough money available on completion to pay for all the taxes, searches and costs of moving home.  Once you have exchanged contracts then there is no going back.  If you then realise that you have not got enough money to complete the purchase you could be sued by the seller for any costs and losses if the sale falls through.

 

Gifted Deposits or Reductions in the Price:

If the seller is agreeing to accept less than the market value of the property this is really a reduction in the purchase price.  We will need confirmation from the seller’s lawyer that the seller will never expect payment of the unpaid amount in the future.  The legal transfer of the land will need to stay at the actual price paid.  Your mortgage lender will need to be told about the situation and they will need to approve this.

 

Money from the sale of another property:

There is no problem if some of the money comes from the sale of a property where we dealt with the sale of the property for you.  If another conveyancer dealt with the sale of the property, then we will need evidence from them, such as the completion statement for the sale.

No payments direct to the seller or cash:

All monies for the property has to be paid through us and you cannot pay any part of the purchase money direct to the seller, nor can you pay us money in cash towards the purchase price or any of the costs involved.

You cannot give part of the purchase price or a deposit to the estate agents either.  Small “reservation deposits” on a new build house purchases are permitted, provided that they are not substantial amounts of money.

 

Examples

  1. Gifts:

If some of the monies is coming from parents or relatives (or anyone else), we will need them to sign a declaration confirming how much they have given you.  They will also need to confirm to us in writing that this is an outright gift and not a contribution towards a share in the property.  We will need to contact them directlu to get these confirmations and also check:

  • Their identity
  • The source of their funds
  • Why they are giving you the money
  1. Money from other sources:

We cannot accept money from anyone except you and your mortgage lender.  We will need to see bank statements to see where the money is coming from.

  1. Wills and Inheritance:

If you have received money from the Will or estate of a relative, we will need confirmation in writing from the solicitors that dealt with the estate.  We will also need a copy of the letter from the executors/solicitors stating how much you are being paid as a beneficiary and a copy of your bank statement showing the money being received.

  1. Savings:

If you are using money saved up over a long time then we will need to see bank statements to show the balance building up over a period of time.

  1. Release of pension:

We will need a copy of your pension statement and a copy of your bank account statement showing the money being received from the pension company.

  1. Sale of shares:

We will need a copy of the share release schedule and a copy of your bank statement showing the money being received from the company.

  1. Dividends from the UK company:

We will need to see a copy of your Dividend Certificate, a copy of your company’s accounts and a copy of your bank statement showing the money being received from the company.

  1. Compensation award:

A copy of your letter confirming your compensation settlement from a solicitor and a copy of your bank account statement showing the money being received from the third party.

Why is cash not allowed?

We do not accept cash payments towards the purchase price as it is almost impossible to prove the source of funds.  If you have a large sum of cash and pay it into your bank account then you will also struggle to prove the source of those funds.  If the source of the cash is not any of the examples above then please speak to your conveyancer.

Guilty Until Proven Innocent?

When looking to prove the source of funds it may feel like you are guilty until proven innocent.  Sadly, this is the case and it is your responsibility to prove the money did not come from the proceeds of crime.

Although this may feel unfair, there is so much fraud within conveyancing it is essential that we are careful and comply with our regulators.

Talk to Banner Jones

We are ready to help you

Flying Start

Flying Start LogoFlying Start

We know how important time is to you, especially when moving house.

Our new Flying Start portal allows you to complete the conveyancing process online, typically saving two weeks throughout the conveyancing process.

You can agree your quote, sign the T&Cs, complete an online ID check and fill out your initial paperwork from their phone within minutes. 

Flying Start - Login

Key Benefits

  • Speed up the conveyancing process - Typically save 2 weeks on the average transaction.
  • Safe & Secure - Two factor authentication so you can be assured you information is always secure.
  • Quick & Convenient - Complete documentation online - saving time and meaning that you don't need to print, sign or post important documents.
  • Easily provide ID - Full integration with a state-of-the art I.D. verification tool. Meaning you don't need to physically provide ID to us.
  • Monitor Progress - Keep track of progress 24/7.
  • Secure Communication - Easily communicate with our team directly through the portal.

Conveyancing Services

At Banner Jones, our highly trained experts offer support and care to all of our clients. We also offer a sensitive approach to each case whilst also ensuring that all of our services are fully confidential. We will provide you with informative house conveyancing advice that will help you through the conveyancing process.

Banner Jones Conveyancing Solicitor Specialists

So why choose Banner Jones as your conveyancing solicitors?

  • Members of the Law and Society Conveyancing Quality Scheme since 2012
  • We are local conveyancing solicitor experts in Sheffield, Chesterfield, Mansfield and Dronfield
  • We offer competitive and clear conveyancing charges. So you only pay for what you actually need
  • We regularly check our prices so you don’t have to
  • Reduced transaction times as we use the latest case management system
  • Your transaction will be undertaken by a specialist conveyancing solicitor
  • The peace of mind of knowing that all work undertaken by us is covered by professional indemnity insurance
  • We are able to carry out conveyancing transactions anywhere in England and Wales. You will not be required to attend our offices in   person
  • We cover all types of conveyancing transactions
  • If your conveyancing transaction falls through we will only charge you for the work that has been done

Accreditations

Conveyancing Quality

House Sale & Purchase

Excellent Service

Mr P, Chesterfield

Thank you for working so quickly and efficiently on our case. Everything has gone so smoothly and stress free because of you and we are very grateful. 

Miss E & Mr M, Chesterfield

Thank you for my Dad's house sale.  We were really impressed with the service you gave.  The whole process was fast, we never had to chase and you kept us up to date with everything very quickly.

Mrs B, Matlock

Great friendly service as usual

Mr & Mrs H, Mansfield

I would like to thank yourself and Claire for all your help, patience and understanding throuhgout the conveyancing process of our late father's property

Mr N, Dronfield

Dale and the whole team at Banner Jones were fantastic. Very knowledgeable and friendly. It was a pleasure to deal with such professionalism and positive attitude.

Mr & Miss, Chesterfield

Used Banner Jones twice now to move house, and have found them to be excellent in every aspect. Would highly recommend.

Mr & Mrs C, Grassmoor

Excellent, speedy, friendly service. Assisted with all my queries and very helpful regarding issues caused by the bank holding the money.

Mrs S, Chesterfield

Will always use Banner Jones for their personal approach, friendliness, expertise and to give you satisfaction

Mrs T, Chesterfield

House sale was completed without any problems and very professional.

Mr & Mrs S, Old Whittington

Banner Jones was friendly, helpful, efficient and considerate. My cousin recommended them to me and I will not hesitate to use any of the services they offer when the need arises.

Mrs M, Whittington

Buying a House

Good service.

Mr & Mrs W, Danesmoor

Everything went smoothly, no trouble at all. Thank you.

Mrs H, Mansfield

Josh was brilliant. Many thanks to you all.

D Gamble, Mansfield

Exceptional value for money compared to other solicitors. Direct contact with the solicitor and his assistant. Responses were quick. A very good service and would definitely recommend.

Mrs W, Mansfield

Used the firm before and will use again. Can't think of a better recommendation!

Mrs A, Chesterfield

Conveyancing services


We recently dealt with Jade Cody and her assistant Morgan in relation to the sale of our home and purchase of new property. The service we received was outstanding. Any questions we had were answered promptly and the whole process was made seem less and as stress free as possible by Jade and Morgan. At no point did we feel that they were too busy to deal with our matters and we were kept up to date regularly. We wouldn’t hesitate to recommend Banner Jones for conveyancing services.

(Conveyancing in Sheffield)

Mrs C, Sheffield

Fantastic service – Professional and personable

10/10 service. I always feel looked after when dealing with Mark Bilton and Dawn Wilford. They provide a fantastic service for a very reasonable price. They are always willing to help and are knowledgeable in all areas. I have recommended Mark and Dawn to many of my friends and colleagues and I have only received great feedback.

(conveyancing Solicitors in Mansfield)

Mr M, Mansfield

Efficient and helpful for the purchase of my first home

I used Jade Cody as my solicitor to purchase my first home. I received timely responses to all of my enquiries and was kept up to date on all matters. I would happily recommend Jade and the team at Banner Jones to people purchasing a property!

(Conveyancing Solicitors Sheffield)

Mrs L, Sheffield

First Time Buyer

Thanks again for all your work getting us into the new house. We feel extremely happy here already.

(Conveyancing Solicitors Sheffield)

Mr B, Sheffield

Many thanks again to you and Morgan for all your help with the purchase, you both made it very stress free which was very much appreciated!

(Conveyancing Solicitors Sheffield)

Mrs E, Sheffield

Auction Sale

I really do appreciate the efficiency, speed and professionalism with which you have worked. Especially given the sensitive circumstances.

I would have no hesitation in using your services again and indeed recommending you.

(Solicitors in Mansfield)

Mrs C, Mansfield

Hello Ben/Kate, thank you very much for all your efforts in helping us purchase our house so promptly and completely everything within our timeframe. We will definitely be in touch for any future investments. Thank you once again and hope you enjoy your weekend. 

(Conveyancing Solicitors in Sheffield)

Miss R, Sheffield

Thank you very much for completing this assignment in the timeframe I requested.  I appreciate it very much.  You guys have been excellent throughout in your dealings with this.  Megan has been professional perfection.  I will be using you guys next time (if you'll have me).

(Conveyancing in Sheffield)

Mr C, Sheffield

Thanks Karen and Amber you have all been brilliant through this process!

Mrs H, Leicester

I have been really impressed with Ben the last couple of days.  From my perspective he has been working incredibly hard and has been proactive rather than simply reactive. He has persevered and achieved an outcome that works for us. He has been very responsive, and when I have spoken to him he has been completely honest and very reassuring as well as fully understanding the impact the last few days are having on us!

(Conveyancing Solicitors in Sheffield)

 

 

Mr B, Sheffield

Recommended conveyance service


Cheryl Bradley at Banner Jones Mansfield has carried out conveyance work on 4 properties for me and the whole process has been highly professional.

 

(Conveyancing in Mansfield)

Mrs M, Mansfield

First time property investor


Tim Barley and his team, have been excellent throughout. The entire process has gone seamlessly. We were particularly impressed with how Banner Jones gave us a weekly update and communicated with our estate agents and mortgage broker. We never felt out the loop and we didn't have to chase for information. There is no doubt that we will use Tim at Banner Jones for our next investment. We have already recommended Banner Jones (Tim) to another investor for their next purchase.

 

(Conveyancing Solicitors Sheffield)

Mr & Mrs T, Sheffield

Relocation

Banner Jones provided an excellent service during our relocation. They always responded to any request and were polite and courteous at all times. Moving home is stressful but relocating is even more stressful. Banner Jones made the relocation work for us. Thank You.

(conveyancing solicitors mansfield)

Mrs M, Mansfield

Get in touch today

We take data privacy very seriously, and we want you to understand and feel confident about how we collect, store and handle your personal data. If you’d like to find out more you can read our Privacy Policy.

Talk to our team