Parents giving my partner and I £50 000 deposit... how do I safeguard this money?

olympicsmummy

My partner and I have a child but are unmarried. We are about to put an offer on a house. We haven't saved a deposit but my mum and dad are giving me £50 000 deposit (they do not want me to repay it back as it's unrealistic!)

How do I safeguard this without making my partner feel rubbish?!!

1. Someone said put it as a second charge to the property so if we split and house is sold then the mortgage company get their money back first then my parents get their money back.

2. Draw up a contract that says that £50 000 goes back to my parents if house is sold? (but then it will be subject to inheritance tax?!)

3. Draw up a contract to say that money is mine if house is sold? (to avoid inheritance tax)

I need to safeguard the money in case we split as I'm only working part time so he will be paying more of the mortgage while I look after our baby. If we split then I would need the money to put a deposit on a flat for me and baby.

Dan-Dan

`safeguard` the money ? Oh paying most of the mortgage ? Why then , would he not be entitled to a fairly even split , should you part?
No offence but you sound like your not sure about things at all !

BitterAndTwisted

What inheritance tax?

What you need is a Deed of Trust drawn up to protect that £50k, so if you split up and the property is sold you get the first £50k back before any equity is split between you.

highguyuk

Just to ask a question on behalf of the OH, but would a normal conveyancing solicitor be able to draw up that "Deed of Trust"?

SuzieSue

highguyuk wrote: »

Just to ask a question on behalf of the OH, but would a normal conveyancing solicitor be able to draw up that "Deed of Trust"?

Yes, it is very common.

BitterAndTwisted

Yes, they would if it's a proper one from a decent firm, not some part-qualified paralegal from one of those online factory-farms.

olympicsmummy

Dan-Dan that is exactly why I need to "safeguard" it because of your attitude.

In law if a couple are married and the husband works full time that is considered exactly equal to the wife who gives up her career and stay at home to bring up the kids thus resulting in no nursery costs and in the kids being brought up by parents. This could mean that the wife's career suffers. Say the hubby paid all the mortgage and the wife stayed home to bring up 4 kids. If they split when they were 40 she would be entitled to half of everything as her bringing up kids is equal to him working. The courts dont say "you didnt pay towards mortgage, he did so you get nothing"

So as I say paying the mortgage is considered equal to staying at home and looking after the kids. However the deposit is separate.. it is my parents are putting in £50K

Yes I am sure of the relationship but I am also sensible and realise that my career is stalling because im bring up our children. IF we split he would still have his income I would have to find a new job on a lower income as I cannot simply puck up my career where I left off! That money is my mums and she would want it protected for me if anything happened

Thank you other posters for all your advice. Deed of trust it is then :-) and is that in my name or my parents??

Yorkie1

Your name.

olympicsmummy

thanks yorkie :-)

C_Mababejive

Shouldnt the parents be safeguarding themselves by retaining ownership to a percentage of the proposed property? That way you and OH dont even need to worry about it.

seriousDFW

This post makes me really sad. You have stated several times here and on the other thread that parents don't want it back. How can you be committed enough to someone to have children and buy a house together but then not want to share everything equally?

I would be very hurt if my OH suggested this. To me a partnership means 'all in' and then if it goes wrong (which surely it hopefully won't?) then it's fair to split 50/50? Surely that's part of the risk of partnership/loving someone?