Proof of funds
We are required to comply with money laundering laws and various evidences must be presented when making an offer to purchase a property.
How can I provide proof of funds?
When it comes to providing proof of funds, you can do so via the following means:
- an agreement in principle/mortgage in principle
- bank statements of your deposit amount (for mortgage buyers)
- bank statements of your cash amount (for cash buyers)
- further bank statements from past months/years to show how your money has built up over time
- evidence of you selling a property (if using the funds to buy the new property)
- if you’ve been gifted the money, a letter from whoever gifted the money
- evidence of money being left to you in a will
- receipts of shares being sold
It’s best practice to retain evidence of where all the funds going towards your purchase have come from, this way you can be prepared when we ask you for documentation
PROOF OF ID
As it is their legal duty to make sure that you are who you say you are, we will ask you for proof of your current address and your identity. This process is called ‘Due Diligence’ which forms part of their checks. You will be asked for some of the following forms of proof of identification.
Proof of name:
- current passport
- residence permit
- current UK/EU photo driving license
- HMRC (Inland Revenue) Tax Notification
- state pension or benefits book/notification letter
Proof of address:
- a current tax bill from your local authority
- rent card or tenancy agreement from your local authority
- recent mortgage statement
- bank statement
- utility bill (not mobile)
WHO ELSE REQUIRES PROOF OF FUNDS?
Your mortgage lender, solicitor/conveyancer will also ask for proof of where your money has come from. Do not be put off if you get asked for proof more than once—it is a legal requirement for everyone to check where your money has come from.
The company has a continuing obligation to conduct due diligence on all customers with whom we transact, including beneficial owners of corporate bodies, and this will include verification of identity and proof of address, and in the case of a purchaser, confirmation of source of funds.
If your rental property is held under an SPV ( company ) please supply the link from company’s house, confirm all beneficial owners and provide from the above proof of ID lists one of the items, proof of name, address, plus current passport from all the beneficial owners. HMRC and our bank which supplies us with a designated account may request to see this is held by us.