Do I need to document family repayments?

HappyMJ

deannatrois wrote: »

The OP's father did something that enabled the OP to buy a house. The OP has been paying the money back. I realise that this means the original mortgage application contained a fraudulent entry.., but I very much doubt after this period of time the mortgage company would be daft enough to recall the mortgage considering the OP has been making the due mortgage payments - and all the problems that would occur with that. As the house was fairly high cost, I would assume that an increase in price would mean the LTV is reasonably high too.

I've always assumed that the intent of fraud allegations was more to do with punishing a perpetrator for running off with money (i.e. theft) than a situation like this.

Fraud does not require the person to have run off with the money.

A lot of fraudsters still actually have all the money they fraudulently claimed. They bought houses with it, put it in the bank etc. When they're caught they repay everything before they appear in court therefore they owe nothing and proceeds of crime won't come after them but they will still get a fraud conviction.

It can happen. I was just pointing out the worst that could happen if anything is put in writing stating the intended gift was never actually a gift.

pleasedelete

So- he could do with the money- you say he doesn't rely on them but they come in handy. Sound alike he does rely on them for an luxuries then.

Do the decent thing. Re-mortgage and pay him off in full. You sound quite self centred. Did he lend you brother a similar amount?

xylophone

Yes, having declared it as a gift to the mortgage lender when in fact its a flexible loan is perhaps a bit dubious

Only perhaps? And only a bit?

but it got me on the mortgage and on the ladder.

So that's all right then?:eek:

eddddy

TickyRa wrote: »

Yes, having declared it as a gift to the mortgage lender when in fact its a flexible loan is perhaps a bit dubious but it got me on the mortgage and on the ladder.

As I'm sure you appreciate, the pragmatic position is:

- 3 years ago your father chose to give you a gift of £50k
- Since then, you have chosen to give your father a gift each month

There's no need for 'secret bank accounts' etc.

(Even though this is an anonymous forum, personally, I wouldn't keep re-emphasising that my father and I lied to a bank in order to get a mortgage. I think banks would see it as being more serious than 'perhaps a bit dubious'.)

AnotherJoe

Since you presumably still get on well with your dad and brother, I suggest that when the time come you tally up how much you still "owe" your fathers estate taking into account any gifts you've given him, and then give that much to your brother out of your share from the estate.

Penelope_Penguin

AnotherJoe wrote: »

Since you presumably still get on well with your dad and brother, I suggest that when the time come you tally up how much you still "owe" your fathers estate taking into account any gifts you've given him, and then give that much to your brother out of your share from the estate.

The brother will only be "owed" half that number (assuming the father's estate is shared equally between the 2 brothers)

getmore4less

Check the nil rate band available to dad any transferable from previous spouse?.

If there is IHT looming then having this as a loan and not a gift is going to be a bad idea as it becomes taxable.

given time the gift falls out of the estate which may be usful.

If dad does not need the money then another option is you pay 1/2 to your brother as and when you can.

In effect your dad gifted you both 1/2 the money and your brother lent his to you as an interest free loan.

AnotherJoe

Good point about it being 1/2, oops

mchale

TickyRa wrote: »

Thanks agrinnall - good point re. the bank and one I will address.

OP, lots of scaremongering going on here, just say originally money was a gift then at a later date you & your father changed your mind's and decided to turned it into a loan (not unusual for people to change their minds), as long as mortgage is being paid & not in arrears i've never heard of a loan being recalled and a house being repossessed.

Jhoney_2

mchale wrote: »

OP, lots of scaremongering going on here, just say originally money was a loan then at a later date you & your father changed your mind's and decided to turned it into a loan (not unusual for people to change their minds), as long as mortgage is being paid & not in arrears i've never heard of a loan being recalled and a house being repossessed.

Presumably you meant to say a gift...