countrywide conveyancing - wont accept bank statements proving savings

[Dollydoo]

Hi, my mum is buying a property (effectively in cash) using money from family members. large bulk of money has been transferred from her cousin who is 89 yrs old. Countrywide have had the building society account book to show her savings but then they said it wasn't old enough and needed to go back a few years and we've done this. then they said they wanted a letter stating the income and job of the cousin from when she started working as well as an account of her lifestyle to prove how she's accumulated her savings and we provided this but now this isn't good enough either, they now want details of the earnings of her dead husband (who died last year at aged 97)! We understand about the money laundering aspect but this is becoming increasingly ridiculous - even the tax man doesn't keep records going back that far! We've said we'll change solicitors but then countrywide sayif we do that we just have to start from scratch and we're supposed to be completing on 12th December. Bank statements from other members of the family have been accepted. has anyone got any advice, thanks. the sum involved from the cousin is £130,000 and will be a short term loan.

[rebel11]

Hi Dollydoo

 

It's standard practise:-

 

http://www.theguardian.com/money/2013/feb/20/cash-buyer-solicitor-paperwork

[Dollydoo]

yes we appreciate the money laundering side of things - but how do you prove earnings going back to the 1940s?? that's beyond a joke. the bank statements should be adequate proof that the money has been saved over many years.

[rebel11]

Hi Dollydoo

 

The only thing I can suggest is to ask the bank concerned to state in a letter when the account was opened. They might have that information. As you state it is very unlikely they would have statements from that period.

[steampowered]

If you aren't getting anywhere with countrywide I would use someone else.

 

Given that you want to complete 12 December I would speak to a local conveyancing solicitor to see if they will accept your documents.

 

A solicitor will be more expensive then a discount conveyancing factory like countrywide, but you are more likely to get a personalised service and are more likely to get someone who is helpful/sensible with the money laundering side of things. The problem with conveyancing factories is that the staff are often not very experienced and do not have personal responsibility for individual files, so they are sometimes unable to make sensible judgment calls on issues like money laundering if a case is slightly unusual.

[ericsbrother]

it looks like they have a computer program that only accepts certain answers to their questions. The other point that needs to be considered is whether it can be construed that aged relative is deliberately disposing of assets to avoid paying for care costs or IHT or whether aged aunt may ask for money back to cover costs of saidsame.

[Ethel Street]

The other point that needs to be considered is whether it can be construed that aged relative is deliberately disposing of assets to avoid paying for care costs or IHT or whether aged aunt may ask for money back to cover costs of saidsame.

 

Do you mean that countrywide conveyancing have actually asked about that? No-one is going to answer the question by saying "Yes I am deliberately disposing of assest to avoid tax..." so what is the point in asking it unless countrywide are willingto come to their own judgement on your relative's assets and motivation for giving?

 

Also IHT and care costs are very different situations. IHT is much more straightforward. HMRC has clear rules that can be applied. And everyone is subject to IHT, same rules. Care home costs are speculative if the donor is in good haelth. The issue may never arise, not everyone goes into a care home. And then local authorities have to form a judgement at the time as to the reason assets were disposed of.

 

 

Read the "Deprivation of Capital" section here

 

http://www.nhs.uk/CarersDirect/guide/practicalsupport/Pages/Chargingforresidentialcare.aspx