Declaration of Trust re money lent to daughter

Guest101

mrginge wrote: »

Go on then, enlighten me...

Regarding what? - I'm not being difficult, I think I know what you're asking, is it:


How does a partner not on a mortgage get a beneficial interest in a property by paying rent?


If so, i'll be happy to explain.

mrginge

Guest101 wrote: »

Regarding what? - I'm not being difficult, I think I know what you're asking, is it:


How does a partner not on a mortgage get a beneficial interest in a property by paying rent?


If so, i'll be happy to explain.

Yep that's the one.

Pixie5740

He's not a lodger and she won't be his landlord, they will be a couple living together. If he makes direct financial contributions (his "rent") to buying the property which include:

• Deposit
• Monthly mortgage payments
• Capital due on the outstanding mortgage

Then an implied trust can be created.

The trust could give the non-owning partner a right to occupy the property, the power to prevent the owner from selling, a percentage share in the proceeds of a sale. The non-owner would have to go to court to try and enforce these rights which may or may not be with their while.

Guest101

mrginge wrote: »

Yep that's the one.

Ok, just to caveat this, I am specifically referring to 'rent' payments, not a couple splitting bills and living costs (outside of mortgage payments)


It's possible for a non-named person to gain an interest in the property by helping to pay off the mortgage.


There are a number of ways this can happen.


It can be expressly agreed, or it can be implied by virtue of the conduct of the relationship.


Shelter wrote some guidelines on this http://england.shelter.org.uk/__data/assets/pdf_file/0019/23473/Relationship20breakdown20EW3202D20Cohabiting20couples202D20sole20legal20owner.pdf


Certainly this has happened in the past, just take a look on the marriages, relationships etc board

mrginge

Guest101 wrote: »

It's possible for a non-named person to gain an interest in the property by helping to pay off the mortgage.

Yes it is.

But what does that have to do with paying 'rent'?

If the daughter uses some of the 'rent' to pay off car finance, does that mean the BF gains a beneficial interest in the car?

Guest101

mrginge wrote: »

Yes it is.

But what does that have to do with paying 'rent'?

If the daughter uses some of the 'rent' to pay off car finance, does that mean the BF gains a beneficial interest in the car?

No. That's just silly.

The implication of paying 'rent' is that it's paying towards the property, towards the roof over his head.

I really am not looking into a pedantic argument over the words I used. The possibility exists and the OPs daughter should be aware.

Kynthia

mrginge wrote: »

Yes it is.

But what does that have to do with paying 'rent'?

If the daughter uses some of the 'rent' to pay off car finance, does that mean the BF gains a beneficial interest in the car?

Is money paid from someone who is part of the owner's household (as they are not a lodger when they live as a couple) legally considered rent or a contribution to household running costs which potentially includes the mortgage? Only a judge could decide, although I don't think it happens that often.

Rent is considered taxable income by the HMRC, yet money paid by members of an owner's household is not considered income but a contribution to household running costs and therefore isn't taxable. So that would support tge theory that the money isn't 'rent'.

MrGumby

AnotherJoe wrote: »

Note, the crucial difference between this type of borrowed deposit and any other via say credit cards or a bank loan, is that mine (and the OPs) doesn't require repayments and I had to sign to that.

OP there is no need to make it a gift as long as the lender is OK with that. Not all are. You can always review at a logical break point, for example, when the fixed period of the mortgage ends.

Thanks AnotherJoe. It's Natwest and they insist the money be a gift without reservation. I don't mind that as long as partner can't get hold of any of the 60K, should they split (it seems quite likely they'll marry in due course but who knows?).

AnotherJoe

MrGumby wrote: »

Thanks AnotherJoe. It's Natwest and they insist the money be a gift without reservation. I don't mind that as long as partner can't get hold of any of the 60K, should they split (it seems quite likely they'll marry in due course but who knows?).

Then you'll have to find a different lender or resign yourself to that possibility as and when they marry. IANAL but think it unlikely if they split up after a year from now and before marrying that he'll be able to get 1/2 the house.

Guest101

MrGumby wrote: »

Thanks AnotherJoe. It's Natwest and they insist the money be a gift without reservation. I don't mind that as long as partner can't get hold of any of the 60K, should they split (it seems quite likely they'll marry in due course but who knows?).

Can I suggest you just keep the money then. Because if they marry, he's entitled to half- that's how marriage works