protecting investment?

silver0101

Hi,

I am getting a mortgage in my name only. My parents want to "give" me £XXXX deposit. They want their money to be secure and wonder by what action/paperwork this could be guaranteed by law?

The perceived threats to the safety of my parents money are as follows:

My husband has previous debts (pre-dating before we met), and which he is servicing in agreed plans with the creditors.
My husband has an ex-wife. They divorced a long time ago and she has remarried. When they divorced, there was no consent or court order, only a verbal agreement in place.

Please note the following context:
My husband and I have no, nor ever have had, any financial associations.
My husbands debts are in his name only.

My parents fear that if I had a mortgage, my husband's creditors could "chase" me for money relating to his past debts. Is this correct?

How can my parents shore up their money to give them the peace of mind they desire, so that it could not be touched by my husband's creditors, or, indeed, his ex-wife?

Is it necessary for me to protect my interests in the mortgage so that my husband's creditors could not lay claim to my house. This begs the question, is there any possibility that the creditors could legally lay claim to any asset of mine?

Please could you advise me (and by default my parents) about what we need to do, and what we can do?

matttye

My understanding is that no, they could not chase you for his debts, but if he pays anything towards the mortgage he would have a beneficial interest in the property even though it's in your name only, and they could put a Charging Order on his share of the house.

If I remember correctly there is case law which suggests that when people live together as man and wife, even contribution to the bills will earn them a beneficial interest in the property.

I think that the only way for him not to earn a share of the property would be to effectively be a lodger. Not sure how you'd go about sorting that out legally.

Information on Charging Orders here: http://www.adviceguide.org.uk/wales/debt_w/debt_action_your_creditor_can_take_e/charging_orders.htm

MEM62

Firstly, you need to be very careful about this 'gift' as you cannot borrow money for a mortgage deposit. If the mortgage company get wind of the arrangement you will be in trouble.

If your husband has been divorced for a number for years on what basis do you suspect that his wife has a claim on his assets - let alone yours? You are not liable for any financial arrangements between your husband and his ex.

You have not stated how much he owes but if it is a large sum you may have potential issues if his creditors believe that he has an interest in your property. This may also be an issue if he declares bankruptcy so I would take some advice on this point.

Lastly and for similar reasons, I assume he will make some financial contribution to the household. Be aware that, in the event that your marriage fails, he may consider that he has a claim against the house. For example - if he can demonstrate that he financially contributed to mortgage repayments etc. I am not too sure on this area but it would be worth you taking advice on just so you know where you stand.

matttye

MEM62 wrote: »

Firstly, you need to be very careful about this 'gift' as you cannot borrow money for a mortgage deposit. If the mortgage company get wind of the arrangement you will be in trouble.

If it is a true gift though, there's no problem.