LEGAL FORMALISATION OF GIFTED FUNDS (GIFTED DEPOSIT LETTER). ✅ REAL ESTATE ✅ SERVICES

Lawyer's actions:

Analysis of the source of funds and the role of the donor (UK or international jurisdiction);
Determining whether notarisation is required;
Agreeing on the format of documents with the bank/broker;
Explaining the tax implications for the donor and recipient;
Providing a Gift Letter template for initial completion.

Lawyer's actions:

Checking the completed letter or preparing it from scratch (in English);
Proofreading the wording for compliance with UK banking and legal standards;
Agreeing on the signature format (electronic, physical, notarised);
Instructions on confirming the source of the donor's funds (bank statements, letters, etc.);
If necessary, preparing cover letters for the bank, broker or seller's lawyer.

Lawyer's actions:

Verification that the document has been accepted by the bank or conveyancer;
Additional adjustments to the Gift Letter (if required by the lender or solicitor);
Support with notarisation, apostille or translation (if required);
Monitoring the transfer of documents to the broker/bank/seller's solicitor;
Closing the legal part before making a deposit. Completion of the process and confirmation by the bank.

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Legal formalisation of gifted funds in the United Kingdom (Gifted Deposit Letter)

When purchasing real estate in the United Kingdom, the deposit is often accompanied by support from relatives in the form of gifted funds. Such a contribution is called a Gifted Deposit, and it must be officially declared using a Gifted Deposit Letter. Banks, brokers and conveyancers do not accept verbal confirmation — only a formal document that meets legal and compliance requirements.

An incorrectly drafted Gift Letter can lead to a delay in the transaction, mortgage refusal or even an AML check of the donor. That is why it is important that the document is prepared by a lawyer taking into account the specific case, region and bank requirements.

Contents of a Gifted Deposit Letter: what a letter about gifted funds in the UK should contain

The document should not be just a statement such as ‘I am gifting funds’, but a structured legal confirmation indicating all key parameters — the amount, origin, relationship between the parties, absence of obligations, etc.

Key points that a Gift Letter should contain:

Donor details (full name, actual address of residence, date of birth, citizenship, and, if necessary, passport or ID number).
Recipient (buyer) details.
Amount of gifted funds, specifying the currency.
Source of the donor's funds (e.g., income from work, sale of property, savings, inheritance).
Declaration of no obligation to return or partial ownership of the property (the gifted funds are not a loan and the donor does not claim a share in the future property).
Declaration of no influence on ownership rights.
Signature (handwritten or electronic, depending on the bank's requirements) of the donor and the current date.
If necessary, notarisation or legalisation (usually in cases of international gifts or significant transfer amounts).

After agreeing on the text with the bank or broker, we also provide the donor with instructions on documents that may be additionally requested.

Legal nuances of gifting funds for a deposit

Gifting funds for the purchase of real estate in the United Kingdom seems simple — but it involves tax, banking and migration risks, especially in cases of international transfers or gifts between non-residents.

Here is what must be taken into account before registering a Gifted Deposit:

The donor must confirm the legal origin of the funds (bank history, inheritance, income).
For large amounts, an AML check of the donor may be initiated.
In some cases, the bank requires additional confirmation — for example, a bank statement or a letter confirming tax residency status.
The transfer of funds must be made to an official account controlled by a lawyer or bank.
Gifts may have tax implications in the donor's country (e.g., gift tax or currency control).

Therefore, the preparation of a Gifted Deposit Letter should be combined with a review of the overall structure of the transaction.

Advantages of working with a Consultant

Preparation of a Gift Letter in accordance with the requirements of the bank or broker

Approval of the text with the conveyancer/lender

Verification of the donor's documents

Consultation on tax and currency restrictions

Support during the transfer of funds to the client account

Frequently asked questions about the legal formalisation of a Gifted Deposit Letter

Question

Is it possible to formalise a gift from a friend rather than a relative?

Answer

Yes, but this increases the bank's scrutiny. In this case, we prepare a more detailed explanation and advise you to provide supporting documents about the source of funds. In this case, the bank may ask significantly more questions than when the gift is from parents, children, sisters, brothers, grandparents, etc.

Question

Does the Gift Letter need to be notarised?

Answer

Not always. Most banks accept a simple written statement. However, for non-resident donors or large sums, it is better to have it notarised or apostilled — this reduces the risks for the recipient.

Question

What happens if the bank does not accept the Gift Letter?

Answer

In such cases, we agree on the format directly with the lender. If the bank does not accept a certain form, we prepare another one, agreed in advance. We can also involve a broker in the negotiations.

Question

Can the donor be checked for taxes in the UK?

Answer

The bank may submit a request, but if the donor is not a UK resident, the check only concerns AML — not tax obligations in the UK. However, it is worth consulting with a local tax advisor.

Conclusion

A Gifted Deposit Letter is not just ‘another bank confirmation’, but a legal document that can significantly affect the entire property purchase process. Professional support ensures that the gift does not cause a mortgage refusal, transaction delays or tax problems. We help make the gift legal, understandable and acceptable to all parties — the bank, the broker and your conveyancer.

Reviews

From Real Users

АС

Анна Ситник

30.07.2025

Юрист одразу попередив, що без правильно оформленого Gift Letter банк може відмовити в іпотеці. Все зробили швидко, зрозуміло, ще й порадили, як підтвердити джерело дарованих коштів — дуже задоволена!

Oleg Petrov

The process turned out to be more complicated than it seems. There were some nuances with the bank, but the lawyers helped to agree on all the wording. The downside was that a translation was needed, which took time.

ЮТ

Юлія Тимченко

Дарувальник був за межами UK, тому хвилювались щодо апостиля. Все організували дистанційно, лист прийняв банк без зауважень. Велика подяка за професіоналізм!

ВБ

Володимир Барабаш

Я не знав, що навіть подарунок треба юридично оформлювати. Добре, що звернувся — у договорі юрист знайшов пункт, який суперечив правилам банку. Єдине — трохи затягнулися деякі консультації.

ТБ

Тетяна Бойко

Все зроблено якісно — пояснили кожен пункт, оформили документ англійською та погодили з юристом продавця. Особливо сподобалась увага до деталей.

РК

Роман Кравченко

В моем случае Gift Letter был лишь частью депозита. Консультант помог правильно подать структуру банка. Все прошло хорошо, хотя сначала было страшно.