Helping out children financially

Red-Squirrel_2

Cacran wrote: »

She has been in a relationship with this person for six years. We thought things were right between them, other than we did not like his personality. He was fed up of travelling to and fro from his parents house, they thought getting a house would be a good idea.
She said that she would be expected to pay half of everything should they get a property together. We knew she could afford half the bills and everyday stuff but knew she would not be able to afford half of a mortgage.
We did not expect that he would do what he has done. I don't think She would appreciate me saying what he has done but trust me, no one would think it forgivable. I feel the need to get outsiders opinions, feels like I have someone anonymous to discuss it with.

It doesn't matter what he's done to be honest. If your daughter doesn't want to be with him anymore, that's enough. She doesn't have to explain or justify to anybody but herself, the days are gone when women were expected to stay in unhappy relationships/marriages!

I can understand your husband being upset, and I don't think you should be risking your financial future to bail her out.

If the house was sold she could rent with her half of the equity and then claim benefits when that ran out.

xylophone

What are the terms of the Deed of Trust?

Cacran

xylophone wrote: »

What are the terms of the Deed of Trust?

This declaration of trusts made date ************* between Mr *********** of Address ***********and Miss ****************** of Address***************** herein after together called the owners.Wheras : by a transfer deed dated ************ the property details of which are set out in schedule hereto was transferred to the owners to half by them as tenants in common.
This declaration is to set out the respective interests of the owners of the property and its proceeds of sale and net rents and profits thereof until sale.
NOW THIS DEED WITNESSES AS FOLLOWS
1 The owners hereby declare that they hold the property on a trust of land.
2 The owners hereby declare that they hold the property and its proceeds of sale (after deducting there from the costs of sale) and the net rents and profits until sale upon trust for themselves as tenants in common.
As to £10,000 for Mr *************** absolutely
As to £75,000 for Miss *************** absolutely
In witness whereof this declaration has been duly executed the day and year before written.
It then states title number their names and address, signed and witnessed.
Hope this is clear.

xylophone

This looks to me to be the simple deed referenced here such that if the house were sold, each party would be entitled to his /her initial deposit and then (as they are tenants in common), half each of any balance after the mortgage had been repaid.



https://www.theguardian.com/money/2017/may/04/buying-tenants-in-common-what-happens-if-we-split-up

Has she yet checked with the solicitor?

tlc678910

Hi,
As suggested by AnotherJoe I think it is a really good idea to lend the money with a charge against your daughters property. Use a solicitor to help you. No ongoing repayments are necessary unless you agree these.

There are several benefits:

The money does not become a joint asset of the (ex) couple - as it is owed to you and protected by a charge against the property - like a mortgage lender has normally.

In terms of inheritance things can be evened up between your daughter and son as the loan is an asset of your estate and if your daughter still has the property she would owe the estate that amount against her own share of inheritance.

The property cannot be sold without the charge being settled. It would be a first charge and so any other debt taken out against the property would be a second charge and you would be first in line for repayment. Make sure your daughter knows that due to the reasons you are helping her with this loan if she sells to buy another house in future (with a new partner for example) you expect the loan to be repaid and not carried forward to the new property.

Good luck