Mortgage deposit help from brother?

steve-L

holly_hobby wrote: »

For a gifted deposit and a mortgage - being the donor family connection is to you i.e your brother - you would generally have to be party to the mge as the family connection is yours. So avoiding ownership for whatever reason thats not being revealled, I don't think will be an option (even if your partner had sufficient income to svc the mge on her own).

There is no tax of the receipient of a gift, whatever the amount. There may be however, tax on the donor's estate, should they die within 7 yrs of making the gift (see IHT PET regs). This can be addressed and provided for by various methods, including effecting a gift intervivos policy - brothers advisers would assist with this.

To my mind the simplest way to do this, baring in mind that you want your brother to have some security re the arrangement would be to :-

• Let him pch the property for cash in your OHs name
• Arrange a private repayment schedule (mortgage) with him - your sols will arrange this
• You arrange life protection to repay the os mge to your brother, if either of you should die before its repaid
• Brother has a registered charge placed on the property in his name - which will remain in place until you have repaid the private mge arrangement
• Brother delcares loan repayments and any interest to HMRC. He will be taxed on interest recd, but if this is an interest free loan, obv there will be no liaiblity - but the repayments must be delcared non the less.
• It should also be discussed what will happen to this charge and mge, shoud your brother pre-decease you and your repayment of the mge .
• And if you can't sustain repayments - either temporarily or on a more long term basis

Obv all parties need to take legal advice and you should also consider suitable life/income protection as part of your family protection portfolio.

Hope this helps

Holly

Clarification: OH has no income and I do not want her name on deeds or mortgage.
(OH currently lives rent free and spends a significant amount every month so long as she does not take my child away).

holly_hobby

steve-L wrote: »

Clarification: OH has no income and I do not want her name on deeds or mortgage.
(OH currently lives rent free and spends a significant amount every month so long as she does not take my child away).

Sounds like a really happy balanced relationship you have going there !!

Anyhoo I digress, if you don't want it in your name or her name - brother buys it, you pay "rent" under a rent to buy arrangement - ie the rent is actually going towards buying the property from him.

Arrangement must be watertight, with further issues being, as the property will be in his name, it forms part of his assets and estate - which may well bring its own issues, both on death and any monetary pursuance from various sectors.

Holly

bigadaj

Your situation sounds complicated. From your perspective it sounds as though renting from your brother would be a good option, as you obviously think that your partner will be straight in for half of any equity or value in the relationship, and assuming you trust your brother.

It would make sense for one of you to make money rom your fathers house if he's in a home, presumably fees are being rolled up and will be charged against the house value when he passes away, or does he have alternative income?

steve-L

bigadaj wrote: »

Your situation sounds complicated. From your perspective it sounds as though renting from your brother would be a good option, as you obviously think that your partner will be straight in for half of any equity or value in the relationship, and assuming you trust your brother.

Yes, perhaps not straight in but I have been professionally advised that if she decides to take our child away then there is little to nothing I can do about it.
I could have proof she was a drug using alcoholic and I would still lose a custody battle with 90% probability.

I am also advised that if I owned the house 100% she would have a very good chance of getting a significant portion of it.

Whereas this is not tomorrow, I don't want the future situation to be she gets legal advice that makes it a strong likely-hood she can get enough money to go and live without working in her home country.

It would make sense for one of you to make money rom your fathers house if he's in a home, presumably fees are being rolled up and will be charged against the house value when he passes away, or does he have alternative income?

He currently has alternative if dwindling income but reality wise he can't sign a change in standing order so my brother just pays the difference in fees from his own pocket. It's a bit complex (Parkinson's and Alzheimer's) ... rather than try and legally get him to pay for his own care and cause upset my brother just pays.