FTB - how to recognise parent's interest

mlz1413

Years ago when I bought with my first b/f we put in different deposits and I asked the solicitor to recognise this so if the house was ever sold we had our deposits back first and then split the difference 50/50.

I'm not sure what was done (i was only 18) but when we sold up that was precisely what happened.

I would ask your solicitor how best to approach the agreement and be able to answer your mortgage correctly.

ognum

If this a gift then it is up to ypou and not your parents to sort out the details if you split.
If it is not a gift but a loan it will need to be repaid to their estate in the event of their death. As a gift if they live 7 years there will be no tax implications otherwise it will be liable for tax!
IMO a gift is a gift, once youve given something its them up to the person you give it to how they manage it.
What happens for instance if you split and you have kids will they still want the money back?

GSXRCarlos

i understand the point the OP is trying to make, i believe my parents would be the same.

It's a gift in every sense of the word, but a gift to their child only. Not to the household/couple.

Rimo2021

alm721 wrote: »

Sounds ok but shouldn't it be a 55 % / 45% split? so your gf would get her 45% and you would get your 45% plus your parents 10 %? This is of course assuming that you and you gf are spliting the remaining 90% equally?

Quite right:

The 'real' ownership split is 10% (parents) and 45% each to the couple. (Total 100%)

However the parents really want to secure their contribution to their son in the event of a split (From what he says I guess they don't want the money back they only want it not to 'leave' along with his girlfriend but 'stay' with their son)

So assuming that is their intention there is no real need for the 2nd charge or declaration of trust which the lenders object to - their 10% gets added to the OPs 45% share giving a 55/45 split in the event of a break up.

Fire_Fox

My mother-in-law lent my ex-husband and I a 10% deposit and wanted me to sign away my rights to it. I refused on the grounds that my parents had helped with other expenditure. I left him seven years on, taking half of everything for the years of hell: by then half of everything dwarfed the 10% she had lent.