money given as a gift

cannyscot_2

If you lose out on your original purchase price then surely that amount is deducted from her orignal amount?

claretmatt

What does your mum want the money for?

LillythePink

What would happen if they split up and she was then effectively left homeless? What would she do then - would she expect you to buy another place for her etc or would she rent and make you all feel guilty?

This has the potential of getting messy and a major falling out.

I would agree with the others, unless it stipulated that it was a loan she shouldn't be due it back and even if she took you to court, consideration of rent free living etc would be taken into account.

hannah29_2

i have no idea what she needs the money for or why all of a sudden.

Counting_Pennies_2

I wonder how well she knows this new man, and if he is pressurising her for money. If this is her only way to releasing capital to give to him, then he could be leaning on her to put money into something and then miraculously walk away from her.

I would be concerned for her in this matter.

Also I wonder if perhaps a written agreement with the terms of her living in the property might have been a good idea in hindsight, and perhaps this could be detailed in any formal dealings with her.

If the property is over 100 miles away, it might be best to cut your losses, do the calculation suggested by previous posters and sell the property, then sit and wait for the property market to continue to fall (as predicted by many) and buy somewhere near to you so you can manage it.

hth

slummymummyof3

We learnt a long time ago, never mix property with family or friends - 9 x out of 10, you will be stung!

onlyroz

I suggest you calculate how much she "should" have paid in rent in the time that she has lived in the house, and how much you have so far paid in mortgage repayments. If these amounts added together are comparable to the money that she gave you then I wouldn't give her a bean. However, if the amount she gave you was much larger than this then perhaps morally (if not legally) you owe her something.

It seems like you need to get into a more open discussion about what your mother needs the money for, and whether she originally considered the money to be a loan rather than a gift. And you also have to decide whether it's falling out with your mother over.

Another option would be to remortgage the house, give your mum the remortgage money, and then rent the house out - you might find that the rent covers the extra mortgage repayments. But this depends on how much equity there is in the house, and what the rental demand is like in the area.

vaio

How does your mother view the money she gave you? Gift? Loan? Joint investment?

ailuro2

So your mother has lived rent free for the past few years which suggests that the money was not a gift it was intended as an investment...

What I think would be fair would be to find out the market value of rent on it, and give her back the deposit minus the years of rent.

she cannot expect to have lived somewhere rent free AND walked away with the equity in her investment as well as her initial deposit, that's not fair.

In the same vein the money for the deposit is your mother's and she has a right to have it back eventually, doesn't she?

Good Luck with that, sounds like you all should have set it down on paper before you entered into the agreement.;)

King_Nothing

Personally I'd tell her to go do one.

She gave you a gift, you used that gift to buy a portion of a house (not her house) and mortgaged the rest (which you pay the payments on). The house is as an investment for your kids, and you've let her live in it rent free for the rest of her life. She sounds very ungrateful.

How much equity is she wanting? 50%, how could she justify that? What has happened to her X amount of money she got from the sale of her house?