Gifted Deposit Legal Advice
Declaration of gift and Independent Legal Advice for family members helping with property deposits
✔ Online
Poppy LLB
Solicitor
✔ Online
Zain
Solicitor
✔ Online
Mohsin
Solicitor
How Can We Help You?
Please supply us with:
- Details of the property being purchased
- Amount of the gift and to whom it is being made
- Contact details of the buyer's conveyancing solicitor
- Your preferred appointment time
Gifted deposits now play a role in a very large proportion of first-time buyer property purchases in the UK — often referred to as the "Bank of Mum and Dad". When parents or other family members contribute towards a deposit, the mortgage lender will almost always require a formal Declaration of Gift from the donor, confirming the terms of the gift.
The Declaration must usually be witnessed by a solicitor who has provided Independent Legal Advice to the donor about the legal and practical implications of the gift — including that the donor will have no legal interest in the property or right to repayment. Our service is fast, fixed-fee, and conducted via video call from anywhere in the UK.
Why Lenders Require a Declaration of Gift
Mortgage lenders need certainty about the source of a deposit and the rights attaching to it. If a deposit were actually a loan, the lender would be at risk of the family member claiming a beneficial interest in the property — potentially affecting the lender's security in the event of repossession.
What the Declaration Confirms
- The deposit is a genuine, unconditional gift — not a loan
- The donor has no expectation of repayment
- The donor has no claim over or interest in the property
- The donor will not be living in the property (unless separately disclosed)
- The donor understands the implications for their own financial position
- The donor has not been pressured into making the gift
What We Cover in Your Appointment
1. The Terms of the Gift
We will confirm with you in detail the amount being gifted, to whom, for what purpose, and that the gift is unconditional. Any ambiguity here can cause delays at the mortgage stage.
2. Inheritance Tax Considerations
Lifetime gifts may have implications for inheritance tax under the seven-year rule (Potentially Exempt Transfers). We will explain the basic position and recommend further specialist tax advice if the gift is substantial.
3. Protecting Your Own Position
Once made, a gift cannot generally be reclaimed. We will explore whether you have adequate funds for your own future needs (including care costs) and whether a Declaration of Trust might be more appropriate than an outright gift.
4. Family Considerations
Gifting unequally between children can cause future disputes — particularly on death. We will discuss whether you wish to equalise gifts in your Will or by other means.
5. Joint Gifts From Couples
Where a gift comes from both parents or a couple, both parties will normally need to sign the Declaration. We can arrange a single appointment for both donors.
6. Same-Day Certification
Once the Declaration is signed and witnessed, we forward the certified original to the buyer's conveyancing solicitor and the mortgage lender the same day. Speed matters in property chains.
Frequently Asked Questions
Is the deposit really a gift, or can I expect it back?
By signing the Declaration of Gift, you are legally confirming that the money is given unconditionally with no expectation of repayment and no claim over the property. If you want any form of repayment or interest, the transaction should be structured as a loan with a separate loan agreement and ILA — please tell us before your appointment if this is the case.
Will I be on the property title or mortgage?
No. By making a gift, you are explicitly confirming that you have no legal interest in the property. If you want to be on the title (whether or not on the mortgage), that is a different transaction — please see our Joint Borrower Sole Proprietor (JBSP) page.
How much can I gift without inheritance tax implications?
Gifts of any amount are potentially exempt from inheritance tax provided the donor survives seven years from the date of the gift. There are also annual exemptions (£3,000 per donor) and small gift exemptions. For substantial gifts, specialist tax advice is recommended — we can refer you appropriately.
What if the relationship breaks down and the buyer separates from a partner?
If the buyer is buying jointly with a partner who is contributing differently, a separate Declaration of Trust between the buyers should be considered — recording each party's contribution and protecting the gifted funds in case of relationship breakdown. We can advise on this alongside the gift.
Can both parents make a joint gift?
Yes. Where the gift comes from a couple, both donors typically sign the Declaration and both receive Independent Legal Advice. We can arrange a single combined appointment to keep things efficient.
How quickly can this be arranged?
We offer same-day and next-day video appointments. Once you book and provide the documents, the appointment usually takes 15–20 minutes. The signed Declaration is dispatched to the conveyancing solicitor the same day it is received in the post.
Book Your Gifted Deposit Appointment
Lenders & Companies We Work With
