• Proof Of Funds

    By Guest on 25th Sep 2014

    I am using a mortgage from abroad to purchase a property in the UK. I have exchanged contracts already and when my bank abroad tried to transfer funds to my solicitors, they refused to give me their bank details. They said that they need to see the money in a UK bank account in my name to make sure that they follow the money laundering regulations procedure. However, the bank refuses to transfer the money to a personal account as it is a mortgage. They insist on transferring it straight to my conveyancers. I am approaching completion date and the funds are still abroad. My conveyancer refuses to accept any other document but a bank statement from a UK account and the bank says it is against their rules to transfer a mortgage money to a personal account. How can I deal with this so that I can complete on time?

  • 1 Answers

    By Guest on 25/09/2014

    In England & Wales (I can't comment on jurisdictions not subject to English law) a lender will want to register a legal charge against the property it is lending the money against so that in the event of default by the borrower it can take possession of the property and sell it. Prior to releasing funds to the borrower's solicitor it will require a "certificate of title" from the solicitor confirming that the legal title is ok and that the solicitor will ensure the legal charge is registered. The lender will only send the funds when asked to do so by the solicitor, not the borrower, and will only send them to the solicitor.

    In view of this I take it that the lender is not lending the money against the property you are buying but against another property, in which case I would imagine they would have to send the funds to the solicitor who acts for you in respect of the remortgage of whatever the property the money is being borrowed against. If that is the case then your English solicitor may accept the funds from that solicitor depending on what country they are in. If they are in an EU country or in the USA this would be better I think.

    In any event, could the bank transfer the money to a solicitor in the same country as the bank and if so could it then be transferred to you in the UK? Or to your solicitors in England (if they will accept this)?

  • Post Your Answer

  • Do you want to be informed of further comments / replies? Yes No

Ask a Question