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

Dan-Dan

chewmylegoff wrote: »

How many relationships have you had in your life? The majority of mine have ended in failure, because there have been more than two, including my current one.

Does it matter ? the guys post had no facts to back it up , was just typical bluster , and in any event if everyone thought the same way , we would be a nation of renters not buyers and this conversation wouldnt be happening

Strapped

Some emotive replies, but this being a moneysaving site, I'll address the Q the OP actually asked!

When my boyfriend and I first moved in together, I already owned my own house. I sold it and we used the proceeds as the deposit on a larger, family house. We held the property as "tenants in common" and I owned the larger share because I made the larger financial investment.

You may wish to consider doing the same - eg, your parents gift you the £50k, and you buy a house worth say, £100k, then you own the amount purchased by the £50k (50%) plus half the rest (25%) = 75%, and your boyfriend owns half the rest = 25%.

In this way, you are safeguarding not only the actual amount of the deposit, but the investment in the property ie any growth in the value of the deposit.

We had wills drawn up leaving our share of the property to each other - this is important if you are unmarried, as holding the property this way rather than joint tenants means you don't automatically inherit the whole property if your partner dies.

Of course, 15 years, marriage and two kids later, it no longer matters who bought what into the relationship (and we own our current property 50/50) but imo it's only sensible to protect your parents money esp if you have a young child.

If your partner quibbles about this, then perhaps mention the "M" word as an alternative :whistle:

foreign_correspondent

seriousDFW wrote: »

I must admit, I hadn't considered the possibility as someone has posted, of the OH running off with a barmaid the moment the parents gift the £50k. I guess I assumed, perhaps incorrectly, that there was a greater level of trust/expectation between the OP and her OH.

Forty-two percent of marriages end in divorce, presumably, most of them went into it with high levels of trust/expectations... but realistically, life can change things - dynamics change, people can grow apart, one party can decide they want out... the OP does not have the protection that being married may offer in her the courts of they split, and whilst I am not suggesting that her OH is likely to run off with the local barmaid (or whoever!), realistically, four in ten married, commited couples do not last 'till death do us part'.

I think the gist is that OP's parents are happy for her partner to benefit from their gift whilst they live together; it will help both of them to get on the propertly ladder, and will reduce the amount of mortgage interest they have to pay. It will financially benefit her partner throughout their relationship, which is great.

However, should the relationship end, maybe many years down the line, (which I assume all parties hope will not be the case), I presume they would want their daughter to retain ownership of that 50k share of the property, to ensure her long term security, and her ability to start again, should she need to, rather than wanting to gift 25k to her partner on their seperation....

We'd all like to think relationships are for life, but sadly, even with the best of intentions, that is not always the case, and I think her parents are being very generous to help them to secure a family home.

OP, please do discuss this with your conveyancing solicitor, this is not unusual - they should always ask how you want the property to be held, and in what shares it will be owned... this is just common sense and can prevent difficult wrangles and confusion should the worst happen - likewise, if, at some point in the future, your partner went bankrupt, or died, this would help to protect your interest in the property.

It is nothing short of follish to enter into joint property ownership without considering these issues, and it only makes the solicitors rich when partners split and cannot decide who should own what!

Strapped

We're just hopeless romantics, aren't we foreign correspondent?

foreign_correspondent

Strapped wrote: »

We're just hopeless romantics, aren't we foreign correspondent?

...you live and learn! In the long term there's nothing romantic about lengthy legal battles and solicitors fees

olympicsmummy

Thanks everyone. No more replies needed now. It was a simple question and the simple answer was "deed of trust". Thanks for those who helpfully answered. Those who criticised my relationship based on a brief internet post in which I asked a financial question I did find your answers amusing! (perhaps you should venture onto the relationship boards though if you want to stir up trouble ;-)

One final point "get more for less" you talk about who pays what into the mortgage. That is my whole point!!! He will pay much more in because we have decided as a couple that he will work and I will look after our kids thus saving on child care costs and meaning I raise my child myself.

If we were to split then it should be considered that my looking after the kids as equal to him earning money! If in 10 years time we split and he said well I paid more of the mortgage than you then thats my point! It should be equal .. him paying the mortgage is equal to me bringing up the kids!

Anyway thanks again for the sensible answers :-)

getmore4less

Strapped wrote: »

Some emotive replies, but this being a moneysaving site, I'll address the Q the OP actually asked!

When my boyfriend and I first moved in together, I already owned my own house. I sold it and we used the proceeds as the deposit on a larger, family house. We held the property as "joint tenants" and I owned the larger share because I made the larger financial investment.

If you were joint tenants you both owned 100%.

getmore4less

olympicsmummy wrote: »

Thanks everyone. No more replies needed now. It was a simple question and the simple answer was "deed of trust".

Getting the contents right will not be so simple.

Once you have draft come back for it to be checked for flaws.
(as I said not many solicitors can get these right)

seriousDFW

olympicsmummy wrote: »

Thanks everyone. No more replies needed now. It was a simple question and the simple answer was "deed of trust". Thanks for those who helpfully answered. Those who criticised my relationship based on a brief internet post in which I asked a financial question I did find your answers amusing! (perhaps you should venture onto the relationship boards though if you want to stir up trouble ;-)

One final point "get more for less" you talk about who pays what into the mortgage. That is my whole point!!! He will pay much more in because we have decided as a couple that he will work and I will look after our kids thus saving on child care costs and meaning I raise my child myself.

If we were to split then it should be considered that my looking after the kids as equal to him earning money! If in 10 years time we split and he said well I paid more of the mortgage than you then thats my point! It should be equal .. him paying the mortgage is equal to me bringing up the kids!

Anyway thanks again for the sensible answers :-)

You didn't need to elucidate - I did understand your arguments all the way through your posts. All I have done is offer my personal view of the matter. I apologise for this unreservedly, I see now that my responses have been inappropriate. However, just for the record, no-one criticised your relationship. We were merely discussing the arrangement your OP referred to regarding the £50k.

Please do also try to understand some posters' confusion: the title said the money was being gifted to you AND partner, yet your posts have said it's being gifted only to you. I am further baffled by the reference to your child as "my child" rather than "our child". The tone of your post can't be inferred but I would suggest that some of the words you have chosen have misrepresented you.

ess0two

olympicsmummy wrote: »

hear hear foreign correspondent :-) you speak wise wise words :-) and appear to have understand the situation.

Yeah curse anyone else who has a differing opinion,eh?

All a bit too business like,is that how relationships have gone nowadays?