Friend buying house with finance - declaration of trust

getmore4less

economic wrote: »

Hi

My friend is buying a house with his fiance. He has agreed with his finance that since he is putting a lot more into the property (some of which has been gifted by his parents) that he needs some form of security if the worse were to happen (death of my friend or divorce) so that:

- on death: some of the money my friend put into the house would go back to his parents and the rest would form part of his estate.

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thanks

That means it is not a gifted deposit but a loan and will have to be declared to any lender.

getmore4less

Don't forget you need capital investment and maintenance split at the % ownership.

You also nee to understand how mortgage overpayments work if they are not at the % of the mortgage paid by each person.