Conveyancer says Moneybox LISA Home-buying Gifts still require donor ID even if I repay the gifts - is this standard?
Hi everyone,
I'm buying my first home in Scotland and have run into an issue that I can't find much information about.
I have around £11,000 in my Moneybox Lifetime ISA. Of that, £2,000 was contributed using Moneybox's official Home-buying Gift feature:
£500 from my sister
£500 from my cousin
£500 from one friend
£500 from another friend
These contributions were made directly into my LISA through Moneybox's gift links and never passed through my personal bank account.
My conveyancer says these contributions must still be treated as a gifted deposit and wants ID, source of funds and gift declarations from all four contributors.
I contacted Moneybox, and they replied in writing:
"The gifts that you receive become part of your Lifetime ISA just like normal deposits into your Lifetime ISA."
They also said they hadn't encountered this issue before and offered to speak directly with my conveyancer.
The part I'm struggling to understand is this:
I have more than £2,000 of my own savings, so I offered to repay the £2,000 back to the original contributors from my current account and fund the purchase entirely from my own money instead.
However, my conveyancer says that even if I repay the contributors in full, or even if none of their money is ultimately used towards the purchase, they would still require ID and AML checks on all of the original contributors.
That's the part I don't understand.
I'm not trying to avoid AML checks if they're genuinely required. I'm simply trying to understand whether this is standard conveyancing practice or whether it's my conveyancer's interpretation of their AML obligations.
My questions are:
Has anyone experienced this with a Moneybox LISA?
Is it normal for a conveyancer to require ID and source-of-funds evidence from people who ultimately aren't contributing to the purchase?
Is there any UK Finance, Law Society, lender or AML guidance that specifically deals with Moneybox Home-buying Gifts or contributions into a Lifetime ISA?
Would another conveyancer potentially take a different approach, or is this standard practice across the profession?
I'd really appreciate hearing from any conveyancers, mortgage brokers or anyone who's dealt with a similar situation.
Thanks!