Help Ex Partner with Deposit for new home

SingleDad101

Hi,
I want to help my ex-partner buy a home for her and our kids. She has a history of being terrible with money so I am reluctant to gift her a lump sum. The money I would be giving her is money I had set aside for our children that I planned to give them when they were 21 as a deposit for their own house. I would like to ensure I keep control of the money and it doesn't get squandered over the next 10 years. I have looked at a deed/declaration of trust or raising a charge against the new property but the solicitors have advised this would not be approved by the lender. I don't want to be on the mortgage or the land registry as that will effect me when trying to buy my own place in future. Could anyone advise a way to achieve this or if they have done something similar. Any help would be great.

getmore4less

things like a charges just make it hard to get the money back when you want/need it

there are products where you keep the money and can get it back at any time you want, but they would have to be eligible for any lending required

An example would be an offset product where you can have an account in your name offsetting the mortgage debt.

kingstreet

There are two lenders, just off the top of my head, which accept a loaned deposit with a second charge over the property to secure it.

blatchp

Don't be misled by your solicitor, they are not lenders. Perhaps get a recommendation for a decent mortgage broker (for your ex-wife and you to see) and see what they may achieve with being honest over the source of the deposit, the repayment requirements for this money (ie if and when).

SingleDad101

Thank you for your quick responses, my next action was to speak to a mortgage broker I know to discuss my options. I don't need the money back any time soon as I had mentally reserved it for the kids future.

foxy-stoat

I dont think you will be able to achieve what you want here.

If the money was loaned with a charge on the house, the only way your children would be able to get it back for their own homes would be for your ex to pay them out in 10 years time. There would need to be a plan set out now so that it is achievable. You are not going to force a sale in 10 years time so she would have to sell and pay them out, no guarantee that she will give up her home, she would either need to make monthly payments to you over the next 120 months for the total amount or she would need to pull the equity out the house (if any) and remortgage - no guarantee of that either.

There would be issue of interest lost as well, depending on the sums of money your talking about, you would need something extra from her as well.

Your better off giving her the minimum amount of money that she needs to buy the place of her own and trusting her not to default on the mortgage and keep the roof over her and your childrens' head and keeping your childrens' money separate.

SingleDad101

I think she needs between 20-30k. It feels like a lot of money to trust her with which is why I want some legal way to make sure the money comes back to me or the kids. If she sells the place before 10 years then she could pay it back earlier or even if she has it after the kids are 21 then it doesn't really matter that much as long as there is some way I could get the money back after that point.

Mojisola

SingleDad101 wrote: »

I want to help my ex-partner buy a home for her and our kids. She has a history of being terrible with money

If she's terrible with money, will she be able to keep up with the mortgage and maintenance and repair costs?

Wouldn't she be better off in a rental?

MovingForwards

Buy a house, put the house in a trust with the kids access to it when the youngest reaches 21. The ex cant touch it/sell it but you will need legal advice.

kingstreet

MovingForwards wrote: »

Buy a house, put the house in a trust with the kids access to it when the youngest reaches 21. The ex cant touch it/sell it but you will need legal advice.

Needing a mortgage...?

SingleDad101

I'd love to do this but I couldn't afford 2 mortgages. I have been told I could create a trust for the kids, put the money in the trust and then the trust goes on the deeds. Also been told that lenders will not like this