helping out the in laws...... HELP!

norf

Hi there everyone, please I hope someone could assist me in how to do all this properly and officially, but first an introduction to our dilemma.


it is my intention to assist my mum in law with the mortgage to the tune of a 20k payment so that she no longer needs to work.
this money is an extra borrowed on top of our current mortgage and when the time comes we would seek to get back what we paid in at the least!, so viewing it as a kind of investment. my wife has a brother who although has a well paid management job lets say has a history of being a little greedy, claiming he's skint (when him and his wife are out on the town) and borrowing money from other family members that are worse off.


so, how do we put this in process, do we need a solicitor? name on the deeds? what is a secure way to ensure when their estate is divided we get back what we paid in?


thank you in advance for any help and sorry if im in the wrong forum!

pjread

Is she paying a higher interest rate than you? Will 20k clear the mortgage?

If the answers to either are no I'd be inclined to pay it off yours (or invest it but that's another conversation...) then help out to the tune of the interest/repayment you're 'saving' if you want to.

norf

hi, yes 20k will clear the mortgage, there will be a small shortfall on the endowment but the father in law is still working and this is not a problem. she just needs to be without the stress of having to go back to work to pay the mortgage. and doesn't want to succumb to one of these places that buy your house and rent it back to you!


we just want to know whats the best way to protect our investment,


thanks for the reply

Mojisola

norf wrote: »

we just want to know whats the best way to protect our investment,

Draw up a loan agreement. You will be paid if the house is sold because they have to go into care and before any inheritance is paid out after their deaths.

Ridzzzz

Hi,
Sorry to be so boring but;
Please DO NOT just do this between the 2 of you (or the 2 families).

I have friends' families who have had previous issues where things have gone a little sour between family members over financial situations, money loans, etc where this was totally unexpected.

If you have even a hint of caution about a family member - which you have expressed, then they may unexpectedly cause issues later. There is the chance you wouldn't get your loan back, even if there appears to be a written document between you and your mum in law.

Get a solicitor involved, so everything is legally binding.

good luck

amnblog

M-I-L should do an equity release for the £20,000 if she can.


She would not have to necessarily make repayments and more importantly, you are well out of it.


Anyone who has tried to assist family where there are siblings with differing attitudes to money will tell you this will otherwise all end in tears.

C_Mababejive

As per #5 Always draw up proper agreements via a solicitor and have your interest registered at land reg otherwise it is all but worthless.