Gifted deposits are increasingly common as parents and family members help first‑time buyers get onto the property ladder. But many people are surprised to learn that lenders often require Independent Legal Advice (ILA) for the donor.
What Is a Gifted Deposit?
A gifted deposit is money given to a buyer to help purchase a property, with no expectation of repayment. Lenders need to ensure the funds are a genuine gift and not a loan.
Why ILA Is Required for Donors
Lenders want confirmation that the donor:
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Understands the money is a gift, not a loan
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Will not have any rights over the property
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Is giving the funds voluntarily
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Is not expecting repayment in future
This protects the buyer, the lender and the donor.
Common Situations Where ILA Is Needed
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Parents helping children buy their first home
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Family members contributing to a deposit
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Gifts used alongside Help to Buy or shared ownership schemes
What Happens During the ILA Appointment?
The solicitor will explain:
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The legal meaning of a gift
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The donor’s lack of ownership rights
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The risks if the buyer defaults
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The lender’s requirements
Once complete, the solicitor signs the lender’s gifted deposit form.
Conclusion
ILA ensures transparency and prevents future disputes. It’s a simple but essential step in the home‑buying process.
Need Gifted Deposit ILA? Book online and receive your certificate the same day.
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