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Any Estate Agents/ F.a.s Out There Can You Help?


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Hi

Have not been on here for over a year.

Had some HUGE personal problems which still are not resolved but am getting there,

Well we had our 'crash' didn't we? Not as big as I would have liked though.

Still never know may be more to come.

What I need to know is .......... and some of you estate agents/FA'S may have the answer to this one.

If buying a property does the Estate Agent/Bank etc need to see proof of my DEPOSIT in MY bank account.

I am buying a home which my father have very kindly agreed to help me buy.

Its over the road from him so he has his reasons.

Wants me in easy reach.

Double-edged sword but its the only way I am EVER going to afford anything.

But even with his financial assistance I did not have enough money to buy it.

My sister has grudgingly agreed to give me some money.

I DID half own the house she is in now. I still live in that house with her.

Stupidly I signed my half over to her (we brought it in 1992 for £50,000) when I wanted to get married in 2002

She could not afford to buy me out so I signed it over on the understanding that IF she ever came into any money

she would pay me back my equity back. When I had it valued in 1999 I had about 20 grand equity in it

I reckon it must have been worth about £135,000 by then as one sold down the Road for that.

So by then my equity would have been between 30 - 40 grand.

She promised me that if she ever got any money she would pay me that back.

And of course I stupidly (again) trusted her!

Well, as you know after that house prices went up astronomically in the next few years.

My fiance and I soon found ourselves priced out of the market.

My Mum died in 2007.

The money I got from the sale of her house I used to pay off debts.

My debts were not too bad but my fiances were astronomical and it cleared me out.

I knew I had to pay them off though or we would have no chance of getting a house.

Yes, I know I am incredibly stupid!!!

I asked my sister for my 30 grand equity as I needed that for us to be able to afford to buy somewhere ................... and yes, you guessed it she refused to give it to me.

She said "I meant I would give it back if I won the lottery"

After that my relationship went downhill fast with my finance and we split last year.

There was way to much pressure on us and in the end it became too much.

My dad has now stepped in and said he will take equity out of his home to help me buy this house.

But this is the problem....................... my sister has not spoken to him for over 25 years.

She hates him !!! And if she knows he is involved in any house sale for me she will not give me her

money.

She does not have a clue that my dad is involved but just to be bloody awkward she has said to me

"I will only give you that 30 grand on completion of a property and NOT before!"

Without her money the sums don't add up.

I have now told her that I HAVE to have that money in MY bank account as proof of a deposit.

(I actually have my dad's money as the deposit but obviously I can't tell her that).

I was told by a Financial Adviser that what I have told her is strictly true. IF I was depending on her money as the deposit

it would have to be in MY bank account as proof.

Anyway when I told her this, she said "Well I'm NOT giving it to you then, you could go and spend it on something else "

So my broker wrote to her and said that what I had said was correct.

he also said to her if she wanted to she could deposit the money in my solicitors bank with the express wish that it would only be

used as a deposit on a property.

She is caught between a rock and a hard place really.

She desperately wants me out of the house we share but she HATES the thought of giving me the money.

Even though morally she owes it to me.

Anyway she is going to see a solicitor on Tuesday.

Will he back up my story?

Or is there any way she can wangle out of it.

What do you guys think.

And yes, I have been incredibly stupid with money I DO know that.

One good bit of news my solicitor reckons I can get the money back from my ex-fiance.

(so far he has refused to give it back). Even though I handed it to him on a plate.. but will

take a while and I don't have the time.

Any advice will be gratefully received.

My house is all going through (survey done etc).

By the way as a matter of interest.

The house was originally on for £240,000 in March.

It has now dropped to £225,000 !!!!!

And this house is to die for !!!

It has been completely refurbed all the way through.

So normally it should have sold as it is WAY the best house in its location for miles.

And when we went to see it the vendor was desperate.

We told him we were willing to pay the asking price, which by then had dropped to "231,000 and he was

literally dropping the price without us even asking him to !!!

He said "If you put down a 5 grand holding fee (which we still have not done) I will drop it to "228,000 which he

did, then he started throwing in free white goods, curtain poles etc.

We were AMAZED !!! Did not even ask him to reduce the price.

So me thinks the housing crash is still on the cards.

Anyway back to my question .......................... does my sisters money HAVE to be in my bank account as proof (or the solicitors)

or has my broker told me an untruth !!

Thanks everyone nice to be back.

Edited by GAL BEAR
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IIRC, there was some piece of nulab leglislation that required EAs to assertain that buyers had the money they said they did when putting forward an offer on a house. I have friends that have had to provide such evidence to reputable EAs who've been a bit embarrased by the whole deal and were quite happy for a brief sight of a bank statement or equivalent (and didn't require copies or anything). Unless there are very explicit requirements from the seller - as noted in a previous response - my guess is that a note from your father and a sight of a copy of whatever docs he has to prove he's actually got the money will be all that's needed.

Some of the more dodgy EAs probably use this as an excuse to try and force you to go for a session with their in-house financial advisor who'll then try and sell all sorts of stuff you don't want or need of course.

And sorry to hear about your personal stuff, life sucks sometimes.

Edited by tbatst2000
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In terms of proving, to an EA, that you have the funds to proceed with a purchase after an offer has been accepted the only proof you need to provide is a letter from your solicitor confirming that you have the necessary funds to proceed at the agreed price (ie the offer that hjas been accepted). The letter from the solicitor should not include any figures (other than the agreed price) or numbers about your finances (EA's do commonly use this info against buyers - ie to get them to raise their offer - if they get their hands on such information). You should never show an EA your bank statement, a letter from you solicitor is all they need and meets the requirements fully of them checking that you can proceed with the purchase at the agreed price.

When you say proving to the Bank that you have the necessary funds (for the deposit) to proceed with the purchase (I assume that you mean the mortgage lender) then yes you probably will have to show them Bank statements, etc. The Bank should not share any of this info with the EA - the EA does not need this info to carry out their task as an EA.

Best not to use an EA's mortgage advisor/broker as they are well known (even though it is against the law for them to do so) for sharing the financial details of a buyer with the EA.

It may be worth going to a CAB to obtain objective, VI free advice about this.

Edited by Alfie Moon
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That's one hell of a story! To answer your question my understanding is the answer is no they don't but when you want to buy and negotiate on price surely it all helps to be able to demostrate that you are a serious buyer and everything's in order. A mate of mine who works part time at an EA says that some people go as far as pulling together a file of info for th vendor showing deposit evidence, mortgage approval, rental agreement (FTB) etc and it really helps them accept a low offer! :)

Hi

Have not been on here for over a year.

Had some HUGE personal problems which still are not resolved but am getting there,

Well we had our 'crash' didn't we? Not as big as I would have liked though.

Still never know may be more to come.

What I need to know is .......... and some of you estate agents/FA'S may have the answer to this one.

If buying a property does the Estate Agent/Bank etc need to see proof of my DEPOSIT in MY bank account.

I am buying a home which my father have very kindly agreed to help me buy.

Its over the road from him so he has his reasons.

Wants me in easy reach.

Double-edged sword but its the only way I am EVER going to afford anything.

But even with his financial assistance I did not have enough money to buy it.

My sister has grudgingly agreed to give me some money.

I DID half own the house she is in now. I still live in that house with her.

Stupidly I signed my half over to her (we brought it in 1992 for £50,000) when I wanted to get married in 2002

She could not afford to buy me out so I signed it over on the understanding that IF she ever came into any money

she would pay me back my equity back. When I had it valued in 1999 I had about 20 grand equity in it

I reckon it must have been worth about £135,000 by then as one sold down the Road for that.

So by then my equity would have been between 30 - 40 grand.

She promised me that if she ever got any money she would pay me that back.

And of course I stupidly (again) trusted her!

Well, as you know after that house prices went up astronomically in the next few years.

My fiance and I soon found ourselves priced out of the market.

My Mum died in 2007.

The money I got from the sale of her house I used to pay off debts.

My debts were not too bad but my fiances were astronomical and it cleared me out.

I knew I had to pay them off though or we would have no chance of getting a house.

Yes, I know I am incredibly stupid!!!

I asked my sister for my 30 grand equity as I needed that for us to be able to afford to buy somewhere ................... and yes, you guessed it she refused to give it to me.

She said "I meant I would give it back if I won the lottery"

After that my relationship went downhill fast with my finance and we split last year.

There was way to much pressure on us and in the end it became too much.

My dad has now stepped in and said he will take equity out of his home to help me buy this house.

But this is the problem....................... my sister has not spoken to him for over 25 years.

She hates him !!! And if she knows he is involved in any house sale for me she will not give me her

money.

She does not have a clue that my dad is involved but just to be bloody awkward she has said to me

"I will only give you that 30 grand on completion of a property and NOT before!"

Without her money the sums don't add up.

I have now told her that I HAVE to have that money in MY bank account as proof of a deposit.

(I actually have my dad's money as the deposit but obviously I can't tell her that).

I was told by a Financial Adviser that what I have told her is strictly true. IF I was depending on her money as the deposit

it would have to be in MY bank account as proof.

Anyway when I told her this, she said "Well I'm NOT giving it to you then, you could go and spend it on something else "

So my broker wrote to her and said that what I had said was correct.

he also said to her if she wanted to she could deposit the money in my solicitors bank with the express wish that it would only be

used as a deposit on a property.

She is caught between a rock and a hard place really.

She desperately wants me out of the house we share but she HATES the thought of giving me the money.

Even though morally she owes it to me.

Anyway she is going to see a solicitor on Tuesday.

Will he back up my story?

Or is there any way she can wangle out of it.

What do you guys think.

And yes, I have been incredibly stupid with money I DO know that.

One good bit of news my solicitor reckons I can get the money back from my ex-fiance.

(so far he has refused to give it back). Even though I handed it to him on a plate.. but will

take a while and I don't have the time.

Any advice will be gratefully received.

My house is all going through (survey done etc).

By the way as a matter of interest.

The house was originally on for £240,000 in March.

It has now dropped to £225,000 !!!!!

And this house is to die for !!!

It has been completely refurbed all the way through.

So normally it should have sold as it is WAY the best house in its location for miles.

And when we went to see it the vendor was desperate.

We told him we were willing to pay the asking price, which by then had dropped to "231,000 and he was

literally dropping the price without us even asking him to !!!

He said "If you put down a 5 grand holding fee (which we still have not done) I will drop it to "228,000 which he

did, then he started throwing in free white goods, curtain poles etc.

We were AMAZED !!! Did not even ask him to reduce the price.

So me thinks the housing crash is still on the cards.

Anyway back to my question .......................... does my sisters money HAVE to be in my bank account as proof (or the solicitors)

or has my broker told me an untruth !!

Thanks everyone nice to be back.

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EAs dont care if you are broke as long as they get a sale and therefore their commision. Its the lender that will want your deposit. You should always get a mortgage in principle before house hunting as you will just mess people about and maybe loose money on pointless surveys if you dont.

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That's one hell of a story! To answer your question my understanding is the answer is no they don't but when you want to buy and negotiate on price surely it all helps to be able to demostrate that you are a serious buyer and everything's in order. A mate of mine who works part time at an EA says that some people go as far as pulling together a file of info for th vendor showing deposit evidence, mortgage approval, rental agreement (FTB) etc and it really helps them accept a low offer! :)

Although of course with property sales transactions bumping along at historical lows it is the vendor and Estate Agents that need to prove that they are 'serious sellers' to the buyers rather than buyers needing to prove that they are serious buyers in this market. Very few vendors are finding buyers in this market because buyers are so few and far between.

Deposit evidence and mortgage approval should both be covered by a letter from your solicitor that states that you have the necessary funds (including mortgage approval) to proceed with the purchase of the property at the agreed price - this letter, as stated before, should not provide any numbers or details of size of deposit or size of mortgage approved (all they need to know is that you have the necessary funds to go ahead with the purchase at the agreed price).

If they do ask for sight of numerical details about deposit, mortgage etc. ask them to provide financial details, bank statements, etc. of the vendor for you to see and copy - I suspect they won't provide these details.

I have never provided more than a letter from my solicitor as proof of having sufficient funds to proceed with a purchase and have had no difficulties in getting offers of 20% - 30% below the asking price accepted and completed.

Edited by Alfie Moon
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  • 442 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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