Loan to relative and partner to help buy first house / flat and how to approach any agreements.

wizzards

bradders1983 said:

wizzards said:

  

They probably can put down 10% -15 % from their own savings for a purchase price of £140K

If they can manage 15% they wouldnt need your help at all.

I don't think its the deposit that's the issue for my nephew.  I think its that the number of lenders prepared to lend to self employed.  His partners is a piano teacher.  Currently training to be a forensic evidence tracing specialist.  That's probably the reason I have decided giving them a gift and walk away is the only sensible thing to do.  Getting involved in other peoples financial affairs. Especially relatives is not a good idea or at least that's what I have decided last night.  I thank all the great people on here for helping me see the best way forward.  You all deserve to have a

Thrugelmir

The suggestion by @MinuteNoodles to explore the Barclays Springboard product is worth following up. At least that way you can help while not being trapped permanently. 

Emmia

Is there a risk that if you gift/loan money to your nephew that other nephews/nieces will expect you to give them a gift/loan also? 

I wouldn't personally loan family money, but if i wanted to "help" I would offer a gift of a relatively small amount (perhaps up to the £3k limit), or perhaps offer to pay for some furniture etc., for the new place. 

However, I do think your nephew should approach you directly with the request. 

Sandtree

The £3k limit is just in relation to Inheritance Tax and is the total annual gift limit... does everyone know something about the OPs health that they're not likely to survive the 7 years before IHT disappears? And that they used up all £3,000 from last year so have nothing carried forward?

Gifts, of a less generous type, caused a major rift in our family when my mother refused to give a Xmas gift to one of her nieces but did give gifts to her sister's other kids (talking sub £50 per person and more likely £20). My mother didn't speak to her sister for 6 years and then she (my aunt) died suddenly.  

I'd certainly consider expectation management of other nieces/nephews if you decide to give the monies (or loan them)

wizzards

Thrugelmir said:

The suggestion by @MinuteNoodles to explore the Barclays Springboard product is worth following up. At least that way you can help while not being trapped permanently. 

This is quite a good product.  Certainly I take a look at it.    The APR is also not too bad.