If family loans you money to buy house does it count against you with the bank?

ska_lover

I would turn it down OP - for various reasons as stated above - along with the fact that they want to buy you two a home, but REALLY it is only for their son.

As an adult, I would honestly rather stand on my own two feet than accept such huge assistance from them, and have them feeling that they 'own' me, I owe them something and the potential backlash that may cause

Poppops

I have to agree with other posters.

It wouldn't be the loan 'arrangement' that would worry me.

As you are unmarried if, God forbid, anything happens to your partner, you could be out on your ear. And unexpected things happen in life ALL the time.

I think the true motives could well be to keep you out of the picture and that is just dreadful.

Mistral001

Poppops wrote: »

I have to agree with other posters.

It wouldn't be the loan 'arrangement' that would worry me.

As you are unmarried if, God forbid, anything happens to your partner, you could be out on your ear. And unexpected things happen in life ALL the time.

I think the true motives could well be to keep you out of the picture and that is just dreadful.

I think it is sensible to think about what will happen if a death occurs. I am thinking about what will happen if the parents of the OH's partner dies. Will the other children of the parents feel that they have been treated fairly as the estate of the parents will effectively have been reduced by this gift?

jumperjohn

Kiwi84.

Don't turn the money down, accept it without the need to set up a 'non repayable loan' agreement. I can't believe the solicitor hasn't suggested a 'deed of trust'. This is a document which outlines terms which in the event of you and your partner splitting up then the estate isn't split between the two of you but the money is protected, the capital, or house, would remain in your partners name, you can word it how you like.

I know this as exactly the same happened to us. Before my wife and I were married her father bought her a house using a deed of trust to ensure that I couldn't remortgage or sell or claim half the house in case of relationship breakdown. Inheritance tax starts ticking for him and she got a house.

Of course as soon as we were married then the deed was annuled.

Take the kind offer and get married!

tinkerbell28

I'd say it was very clever of them. They're protecting their "family money" from you.

If your partner dies, you've no claim on the house, you get turfed out.

If you're married in the future and get marital home rights....well that's all well and good but if there is 200k odd outstanding on the property you're going to need to buy your partner out.

I would be careful. Yes it is a kind offer, but it leaves you VERY vulnerable and up **** creek tbh if anything bad happens or the tide turns.

Florida2013

Wouldn't you be better off allowing the parents to buy a house of your partners choice and then you renting it from them at, presumably, a lower market cost? Then you'd have the house you want at an affordable price but then have the flexibility to buy something of your own or buy the house off them at a later date.

SavingPennies_2

I wouldn't touch their money will a barge pole.


They will have control over you as long as you live in their house.
You will have no personal security if the relationship breaks down.


Id be looking at buying somewhere smaller between yourselves or for yourself. You will have less money, you may struggle financially at times, but you will have your freedom and financial security and that's priceless.

CH27

https://forums.moneysavingexpert.com/discussion/4880554

This thread makes interesting reading.

shireknight

As long as you're 100% sure there's not going to be any document that says you have to repay the money then I would take the offer.

Best case scenario everything goes fine and eventually you end up with a free house, worst case scenario everything goes pear-shaped and you've lived rent free in a house for however long the good times lasted giving you a chance to save up the money you have saved on paying rent towards a deposit on your own house.

These people are offering you free money you may not like the strings they are attaching to it but think beyond that because there is a chance here to build a strong foundation for your own family using their generosity and personally I can't see any way you can lose from this.