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Could my 3y.o. daughter own 5% of a house in my trust under 18?
Jeff.Jones78
Posts: 36 Forumite
Hello,
I separated and my ex is trying to get me to lend her some money to help her buy a property.
I am happy to consider it as long as I could make sure the money is safe.
I thought of either co--ownership her new property (5% in my name and 95% in her name) but that would prevent me to use the help-to-buy to buy my next place...
So I wondered whether it is possible to buy 5% in our daughter name (under my trust) and my ex would buy the remaining 95%.
Could a 3y.o. be the legal owner of 5% of a house?
Thanks
J
I separated and my ex is trying to get me to lend her some money to help her buy a property.
I am happy to consider it as long as I could make sure the money is safe.
I thought of either co--ownership her new property (5% in my name and 95% in her name) but that would prevent me to use the help-to-buy to buy my next place...
So I wondered whether it is possible to buy 5% in our daughter name (under my trust) and my ex would buy the remaining 95%.
Could a 3y.o. be the legal owner of 5% of a house?
Thanks
J
0
Comments
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Not possible. Someone under 18 cannot own property or land in the UK.0
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saverbuyer wrote: »Not possible. Someone under 18 cannot own property or land in the UK.
Even in trust?0 -
saverbuyer wrote: »Not possible. Someone under 18 cannot own property or land in the UK.
Don't think that's strictly true, though they'd have trouble getting a mortgage or (if very young) instructing solicitors.
Sorting out a mortgage may be the stumbling block for the OP's plan.0 -
For your 5% to be safe you would need to place a charge on the property so in the event she sold the property or tried to draw equity out, you would need to agree. You would not be able to own 5% if you are on the mortgage, deed of trust could be drawn up but you would be equally liable for the debt.
For the charge (value) to be save you would need future prove to safeguard the possible loss in property value or missed mortgage payments, so your Ex would need to be buying at LTV 75% or less.
I assume as she needs 5% to help to buy she is looking at a 95% mortgage or thereabouts. Your 5% would be far from safe.
You would be better off just giving her the money as a gift, as the place would benefit your daughter as well.
Your daughter could not own or part own a property.0 -
glentoran99 wrote: »Even in trust?
The trust could own it yes but the 5% share would need to be pretty sizable to be worth while.
Is there going to be a mortgage OP?0 -
or use it to buy a place for you and your daughter.0
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What about in 20 years when your daughter wants to use help-to-buy?Mortgage (Nov 15): £79,950 | Mortgage (May 19): £71,754 | Mortgage (Sep 22): £0
Cashback sites: £900 | £30k in 2016: £30,300 (101%)0 -
Second charge is the best answer, as suggested by foxy.
No issues with a minor being involved. No property ownership issues and a few mortgage lenders won't have a problem with it from the ex's POV.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Jeff.Jones78 wrote: »
I separated and my ex is trying to get me to lend her some money to help her buy a property.
Be very careful what you do here regarding child maintenance.
This would be classed as a voluntary payment and not recognised whatsoever by the CMS.
Your ex's housing status is no longer your concern. As well intentioned as you may be this won't end well. It's going to be the thin end of the wedge i'd reckon.0 -
Be very careful what you do here regarding child maintenance.
This would be classed as a voluntary payment and not recognised whatsoever by the CMS.
Your ex's housing status is no longer your concern. As well intentioned as you may be this won't end well. It's going to be the thin end of the wedge i'd reckon.
? Voluntary payments are completely recognised by the CMS
this is a loan, which wouldn't be recognised for that reason.0
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