Loan agreement with parents

cashbackproblems

glentoran99 wrote: »

What did you tell the mortgage company the 45k was?

I didn't tell them about the gift as I had the money in my accounts and my parents gave it me last minute, same with the solicitor. Plus they wanted an extra £200 per person who gifted for checks.

cashbackproblems

ThePants999 wrote: »

You WOULD want to do something if you transferred the property into your spouse's name as well as your own. The key thing here would simply be not to transfer it into a joint tenancy - make sure you become tenants in common, with a declaration of trust that properly reflects how you want to split it.

thanks I will have to read up on this but I hope it is binding even after marriage...unlike pre-nups which I know hold no value with courts.


But you are right the courts wouldn't necessarily give her the house after just a few years maybe I am overthinking it too much but I have a not so bright work colleague who is being taken to the cleaners due to lack of planning.


Financial assets can easily be hidden with advanced planning (even pre-marriage), but property obviously cant.

ThePants999

Nothing is "binding" upon a court. A court can order whatever division of property they like on divorce. But there's no point worrying about their theoretical power, just worry about what they'll ACTUALLY do. And what they'll actually do is be fair, looking at what the spouses brought to the marriage, what they contributed in it, what they planned (e.g. a declaration of trust that says you get the first £45K, signed by both parties, is a pretty strong indicator that the two of you had agreed you'd get the first £45K!), etc.

gettingtheresometime wrote: »

Forget divorce what about death?

Unfortunately death doesn't come after a long marriage - it could happen days or months after a marriage and unless the whole situation is handled correctly, the OPs partner could walk off with a property that may have had a huge %age paid for by the parents in law

Yes, but "handling the whole situation correctly" simply means "writing a will" and "not entering into a joint tenancy".

cashbackproblems

davidmcn wrote: »

But not if you've told the first chargeholder that the parents' money was a gift and that they wouldn't have any interest in the property!

yes this is what I told them. Is there a legal agreement I can have between myself and parents then which would be enforceable?

cashbackproblems

ThePants999 wrote: »

Nothing is "binding" upon a court. A court can order whatever division of property they like on divorce. But there's no point worrying about their theoretical power, just worry about what they'll ACTUALLY do. And what they'll actually do is be fair, looking at what the spouses brought to the marriage, what they contributed in it, what they planned (e.g. a declaration of trust that says you get the first £45K, signed by both parties, is a pretty strong indicator that the two of you had agreed you'd get the first £45K!), etc.

Yes, but "handling the whole situation correctly" simply means "writing a will" and "not entering into a joint tenancy".

but there is no point in doing this if they then take this 45k into account when splitting assets. Or would that 45k be ignored?

Pixie5740

cashbackproblems wrote: »

I didn't tell them about the gift as I had the money in my accounts and my parents gave it me last minute, same with the solicitor. Plus they wanted an extra £200 per person who gifted for checks.

I'm confused? Where does your solicitor think the £45k came from? Did you already have £45k in your account and then your parents gave you another £45k and you're going to use their £45k to complete the purchase and your £45k to......spend on something else?

BlaEm

cashbackproblems wrote: »

I didn't tell them about the gift as I had the money in my accounts and my parents gave it me last minute, same with the solicitor. Plus they wanted an extra £200 per person who gifted for checks.

Be careful. You have to tell your mortgage provider and solicitor about source of deposit, and have to get the gift declarations signed. If you don't declare the gift, it's mortgage fraud.

cashbackproblems

Pixie5740 wrote: »

I'm confused? Where does your solicitor think the £45k came from? Did you already have £45k in your account and then your parents gave you another £45k and you're going to use their £45k to complete the purchase and your £45k to......spend on something else?

Yes I had the 45k in my account my parents gift was in addition...I guess you could technically say I used my own 45k for the deposit and their for the major home repairs required. Also mine is in stocks and shares and theirs cash. I used statements from my S+S ISA to show them proof of deposit. This could be liquidated in 2/3 days.