CSA Mortgage and Family loan agreement

Roy_G_Biv

creampuff wrote: »

, but fortunately we have been offered a family loan to help us on the ladder - nothing fishy about that.

so if we get a loan agreement written by a solicitor and secure it on the house would this not be like getting a loan secured on the house for home improvements which i believe awould be taken into account... (read this on the internet)

Consensus on this forum says that wont work.

Phone the CSA helpline anonymously (record it if you can) and ask their position. The CSA is well known for not following its own advice.

If its not favourable then consider owning the property as tenants in common with the family member and renting that part of the property from them. Just ask the solicitor for a tenancy agreement for a part-rent part-buy property, theres plenty of boilerplate agreements on the net.

kelloggs36

creampuff wrote: »

Hello all thank you for your posts.

I feel like i have kicked a hornet's nest...

We are not trying to deprive the children of money, we pay a large amount and have done for the last 12 years. We feel that now is the time to finally get out of rented accomodation and finally buy our own home and settle down to have children of our own. unfortnately mortgages are hard to get as due to the very large depositis needed and the CSA don't give you enough disposable income to give you a chance to save, but fortunately we have been offered a family loan to help us on the ladder - nothing fishy about that.

so if we get a loan agreement written by a solicitor and secure it on the house would this not be like getting a loan secured on the house for home improvements which i believe awould be taken into account... (read this on the internet)

Not if the money was loaned to you by family, if the money was loaned to you by a legitimate lender eg bank then yes it would be counted. Again, depends on what the improvements were as not all improvements would fall under the category of allowable housing costs.

Kimitatsu

Creampuff you havent kicked the hornets nest and ultimately its up to you what you decide to do.

Kellogs is our resident guru on CS1 as she has worked for the CSA both in assessment and compliance and if you read her thread has been successful in challenging the CSA in her own right.

If it was me I would take her advice as in post #16 as she can give you a first hand opinion. None of us doubt that you are supporting the children, trust me those of us which are still on CS1 realise the unfairness that we are all still on CS1 and have not been transfered over to CS2!

Have you checked there are any other variations to the assessment you can apply for, such as a large amount of debt you are still paying off incurred within the marriage, more than 52 nights a year for the children staying over, excessive travel to work? Thos would reduce your assessment, you may want to check that they have calculated the assessment properly as well, ours is always wrong the first time without fail, we then point out the mistakes and it is rectified *sigh*, again if you ask Kellogs nicely she will check it for you.

Whatever you decide to do, enjoy your first house together, and just remember maintenance is not forever (even though it feels that way sometimes!)

creampuff

Hi thank you !
guru Kelloggs - we already have the money for the deposit which is now with the solicitors.. i'm absolutely petrafied that the CSA will leave us with no money and we will lose our house.. we haven't even moved in yet!

any advice to help us out? we have our contact and travel to work costs taken into account. We have the kids 1 night a week (CSA1) so not taken into account.. help

any further advice - especially around the loan..

Roy_G_Biv

The loan is not going to work Im afraid.

See post #2 and reiterated by post #16.

kelloggs36

For housing costs the CSA will ask for the amount outstanding on the mortgage and require evidence of it. If you say it is for home improvements, again you will need to send in evidence of what the improvements were and where the money went. The deposit will be disregarded as it was loaned by persons who are not certified to be able to do so on a commercial basis.

Roy_G_Biv

Hello again, I have just spoken to a property lawyer, an inhouse chap who works in the company properties and land acqusitions department. I recalled an employee having the same trouble as you and came to me for advice and I referred him to Props.

You need to print this forum thread in its entirety, DO NOT change anything and put it all in front of your solicitor.

DX2

Roy_G_Biv wrote: »

You need to print this forum thread in its entirety, DO NOT change anything and put it all in front of your solicitor.

And this helps the OP how exactly?

Kimitatsu

creampuff wrote: »

Hi thank you !
any advice to help us out? we have our contact and travel to work costs taken into account. We have the kids 1 night a week (CSA1) so not taken into account.. help

Why is this not taken into account? As long as you have them more than 52 nights a year then this should be taken into account in the assessment, and you should have your liability reduced by 1/7 accordingly.

I cant see how printing this entire thread out and showing it to a solicitor will help either......perhaps you could share this fantastic bit of knowledge?

creampuff

Hi thanks for all your posts

The csa didn't take into account as you have to have the kids stay over 104 nights on csa1. Rubbish.