By Isle of Wight Observer
If you are planning to either buy your first home, upsize to a larger property, or otherwise invest your money in property, it is very likely that you will be required to provide source of funds evidence to your conveyancer at the onset of the transaction.
The obligations on conveyancers are quite strict. Under the current legislation, as well as providing evidence of the current location of funds such as a bank statement, you must also be able to prove where these funds have come from – i.e. the original source. We explore below some of the most common scenarios.
Sale of a previous property
This is normally the easiest source of funds information to produce as you are required to provide a completion statement from the solicitor who dealt with your sale, along with a bank statement showing the funds going into your account.
Savings
Your conveyancer will need to see statements that show how your savings have built up over time. Savings can be a set sum coming from your salary every month or lump sum payments from a work bonus scheme, so it’s important to bear this in mind when producing your bank statements. Most solicitors will request six months of bank statements as evidence of your savings.
Inheritance
If you have received an inheritance from someone’s estate, a copy of the estate accounts showing the distribution of the estate together with a copy of the Grant of Probate and a bank statement, showing the monies being paid into your account will suffice. Alternatively, a letter from a solicitor confirming your share of the inheritance together with a bank statement will satisfy the requirements.
Whilst the above list is not exhaustive, the key – to satisfying the requirements quickly – is to provide as much information as possible, together with a full explanation, and answer any further requests by your conveyancer as quickly as possible to prevent delays later on.
If you would like to speak to a member of our Residential Property team please contact us on 01983 533938.