Best way to give a large deposit on daughters first house.

Old_Git

surely it would be easier to come to a private arrangement with your daughter that you get 25% off the sale profit .

Pixie5740

bagby wrote: »

If we all went on the mortgage do we all have to submit our income details etc. or could daughter get the mortgage on her income alone.

You would all have to apply for the mortgage so you would all be credit checked by the lender. You will all have joint and several liability for the mortgage.

What you're trying to do sounds very messy. Either gift your daughter the money, areal gift not an investment where you end up in the deeds, or "invest" your money elsewhere.

G_M

Old_Git wrote: »

surely it would be easier to come to a private arrangement with your daughter that you get 25% off the sale profit .

What if vaue drops and tere is no profit?

What if daughter marries (9 years from now) and then divorces (10 years) and husband claims his share of the house (OP is not on Deeds so owns nothing)?

There are lots of 'What ifs...' to consider.

Best to consider/agree now than several years down the line when things have changed.

ViolaLass

What if you need the money back and your daughter doesn't want to sell?

bagby

Thanks. Wanted to keep it all above board. May need to have a rethink. I thought we would be able to jointly own part of the house with daughter and her get a mortgage for the rest.

bagby

ViolaLass wrote: »

What if you need the money back and your daughter doesn't want to sell?

We wouldn't want the money back until she wanted to sell.

bagby

G_M wrote: »

What if vaue drops and tere is no profit?

What if daughter marries (9 years from now) and then divorces (10 years) and husband claims his share of the house (OP is not on Deeds so owns nothing)?

There are lots of 'What ifs...' to consider.

Best to consider/agree now than several years down the line when things have changed.

If value dropped then we would accept that. 25% increase or decrease.

Totally agree with if daughter marries etc. wanted it all done legally.

bagby

What you're trying to do sounds very messy. Either gift your daughter the money, areal gift not an investment where you end up in the deeds, or "invest" your money elsewhere.[/QUOTE]


Sister and I were looking for a buy to let property and thought that this way we would be investing and could also help daughter.

Lavendyr

You might find it difficult to find a mortgage lender who will go along with what you propose. Your interest in the house would restrict theirs.

Kynthia

You can buy 25% of the property as a joint owner and you would go on the mortgage and deeds. A deed of trust can be drawn up which specifies the percentages of ownership. The deed of trust will protect the parent's share should the child marry and then divorce, as only the 75% would be a marital asset. This will ensure that the parent would get 25% of the sale price and therefore should probably pay 25% of the buying and selling costs. However as all bills, repairs and maintenance costs would be revenue costs they could be met by the child as it is their home. As the parent doesn't live there then any gain they make is eligible for CGT.

If a lodger is found then the parent would only need to declare the income and potentially pay tax on it if they actually recieve a share of the rent. As far as I can see there's no reason that they have to recieve a share, as if the whole property was let and the joint owners are not married then the income doesn't need to be split according to ownership.