Is a parent responsible for their son's debt

speedypeavey

Hi,

Here's the scenario:

Single Mother owns her own house and pays mortgage.
Eldest son (27) lives there rent free.
Grand Parents die leaving Mother a property.
Mother agrees to sell property to Eldest Son at a knock down price.
Eldest son takes out mortgage on property.
Eldest son starts to strip out property for refurbishment

Year down the line, Eldest son is still living in Mother's house rent free.
Eldest son would rather spend his money on alcohol than his mortgage.

Eldest son starts to default on mortgage payments.

Question: Is Mother in any way responsible for Eldest Son's debts?

Thanks.

switched_off

A. As long as mother didn't act as a guarantor, no.

Good luck

VIGILANT22

No BUT this could instigate all sorts of others problems, particularly the age of the mother...pension credits, state benefits etc.....this is not a straight foward yes or no answer....people keep thinking they can inherit property with no consequences..this is not the case...It makes no difference to me, however when I point out pitfalls to people on this site they don't like it....

switched_off

VIGILANT22 wrote: »

No BUT this could instigate all sorts of others problems, particularly the age of the mother...pension credits, state benefits etc.....this is not a straight foward yes or no answer....people keep thinking they can inherit property with no consequences..this is not the case...It makes no difference to me, however when I point out pitfalls to people on this site they don't like it....

This is a surprisingly good point.

VIGILANT22

Well thank you!...but for me it is not surprising, but I understand why you say this...as this is the same reaction on here...when someone says I have inherited my mum's house who is still alive etc....the first thing which jumps out is "deprivation of assets"..then someone says "family in trouble" i m going to buy house for 50k even altho valued at 150k...then rent it back!...oh yes and where has the 100k gone!.....so much involved and people think they can do as they like.....even then when they read the FSA website they say "my opinion on reading this is".....it's not down to bl**dy opinion....Fact is Fact...sorry for the rant....Just unbelievable how people think they can reinvent the law!

speedypeavey

Hi Again,

I think I need to clear up something here.

Mother inherits house from GrandParents (who are both dead). No outstanding finance on house.

Mother sells house to Son. The price is irrelevant.

Son takes out mortgage to buy house.

Son starts to default on mortgage payments.


The fact I'm trying to establish here is:

Is their relationship relevent?

Or is it just the same as if the Mother had sold the house to a stranger?

In which case, the stranger's financial difficulties would have zero effect on the Mother.


Thanks.

VIGILANT22

speedypeavey wrote: »

Hi Again,

I think I need to clear up something here.

Mother inherits house from GrandParents (who are both dead). No outstanding finance on house.

Mother sells house to Son.

Son takes out mortgage to buy house.

Son starts to default on mortgage payments.


The fact I'm trying to establish here is:

Is their relationship relevent?

Or is it just the same as if the Mother had sold the house to a stranger?

In which case, the stranger's financial difficulties would have zero effect on the Mother.


Thanks.

Instead of all these "stories" what is yr exact problem? Is it that you've bought an inherited property from yr mother at a deflated price and you've defaulted?

speedypeavey

The Mother is my partner. Rather than post a rambling story, I thought I would state clear concise facts of the matter.

She has asked for advise. I'm trying to help her. I'm no expert.

Kavanne

as long as she is in no way involved in his mortgage she can let him go bankrupt and it won't affect her, providing they have no other joint finances.

Your partner might want to look up the rules of 'Deprivation of assets' if she sold the house well below market value...

VIGILANT22

speedypeavey wrote: »

The Mother is my partner. Rather than post a rambling story, I thought I would state clear concise facts of the matter.

She has asked for advise. I'm trying to help her. I'm no expert.

How long ago did this transfer take place and do you know what the sale of the property was and the mortgage taken out?

speedypeavey

Thank you very much.

She's not involved in his mortgage in any way.

She's not chasing any 'Deprivation of assets'. The house was 'discounted', but not well below market value. She was, and is, happy with the selling price.

Her only concern is that the mortgage company can't come to her to cover his debts.