Do I need to document family repayments?

HappyMJ

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.

It's fraud however you play it.

Read what you sign. See - https://intermediaries.virginmoney.com/virgin/assets/pdf/Gifted_Deposit_template.pdf

this is a gift and is not being repaid to me/us at any time; AND
I/We do not expect to have any financial or legal interest in the Property as a result of this gift.
this gift will be repaid to me/us:
when the property is sold; OR
at a rate of £ each month.

I/We understand that giving false information about this gift may be mortgage fraud.

Did the OP tick those boxes?

Herbalus

Yes it's fraud.

But in a situation where the repayments are flexible and do not jeopardise the mortgage payments - i.e. repayments can stop if need be - it seems to avoid the problem that banks are wishing to avoid with this statement, which is to ensure the mortgage is payable.

I don't see affordability being affected if the only cash that's being used for the "gift" repayments is some of what is left over each month. So the mortgage company has not lost out, and nobody has been deprived of anything.

So yes, it's fraud, but not the most serious.

I would keep a record of what you have gifted back to your father, and when he passes then deduct '£50k minus that amount' from the estate before dividing in two.

Penelope_Penguin

Herbalus wrote: »

I would keep a record of what you have gifted back to your father, and when he passes then deduct '£50k minus that amount' from the estate before dividing in two.

...then deduct '£50k minus that amount' from the estate after dividing in two...

It's maybe easier, when the time comes, to add whatever monies are "outstanding" back to the estate, and then divide that by 2 You wouldn't have to physically do that, but it would reflect a fair split between the two brothers.

TickyRa

Thanks again for the input and advice.

However I think I’ve stirred up a hornets’ nest, what with allegations of fraud.

For the purpose of posing a concise question free from extraneous detail I exaggerated my situation and in hindsight can see how I framed my original question was stupid.

To clarify my situation: my dad gave me a lump sum to boost my deposit on buying a flat. At the time I had been incapacitated for over two years from an accident and consequently had eroded my saved deposit to live on. I guess my Dad wanted to give me a foot up, which was prompted by my then rented flat being sold off.

From my dad’s POV there never was any obligation or agenda to make regular repayments to him - something he has reiterated frequently when I have done so. When I say he requested I repay him as and when I could, it was on the understanding in the future should I find my circumstances vastly, or if I were to receive a windfall, then and only would he expect some renumeration. To him this was always a gift.

From my perspective I've always treated it as a loan, hence my referring to it as such in the OP. From the outset, due to my own want, I've always intended to repay him whatever I could. My income has improved (at the same time he has since retired), circumstances have changed and consequently I have felt a greater obligation to rennumerate him and increasingly come to treat this as something to repay.

My OP was not only exaggerated but also naïve in saying we had to ‘appease a mortgage lender’ (which I didn’t realise would be so frowned upon), but as I say this was to for all intents and purposes was to present a succinct question free from extraneous detail. The language used reflected my perspective of it being something i should repay on principal.

I suppose it pays to tell the truth (however waffly) - especially when you incriminate yourself in the process! It’s my first time on the forums and I guess you live and learn… thanks again for your advice – you seem like a friendly and helpful group.

pleasedelete

He was still working at 83?