Protecting bank of mum and dad proportional share

TEC6245

Hi, our daughter is a first time buyer with her partner and we are going to give them £50K towards a £300K house as a gift with no expectation this would ever be repaid..  They have some savings of their own in addition. They are happy and are likely to marry in the next few years, but you never know the future.  Should they ever split we would like to ensure that she retains the benefit of our contribution, which we have discussed with them and both have agreed this would be fair. Is there a way legally to ensure this happens?  If so would the protection reflect the cash amount, or a proportion of the equity?  Would be grateful for any advice on this.

MWT

Your gift to your daughter should be unconditional to avoid any issues with using that as part of the deposit.

She and her partner then purchase as 'Tenants in Common' with an agreement which can be drawn up by their solicitor designating the percentage ownership between them.so for example if her only input to the deposit was the £50k you give to her, then she would own 1/6th of the equity in the house.

They can make the rest of the agreement as simple or complex as they wish to reflect her partners deposit, other purchase costs and how they will share responsibility for the mortgage payments etc.

ACG

Natwest would allow you to secure a charge on the property at the time of completion, but I think it would be for a monetary amount rather than a percentage. I am not sure if any other lenders allow something similar. 

getmore4less

ACG said:

Natwest would allow you to secure a charge on the property at the time of completion, but I think it would be for a monetary amount rather than a percentage. I am not sure if any other lenders allow something similar. 

If the parents secure a charge it is no longer a gift.

MWT

getmore4less said:

ACG said:

Natwest would allow you to secure a charge on the property at the time of completion, but I think it would be for a monetary amount rather than a percentage. I am not sure if any other lenders allow something similar. 

If the parents secure a charge it is no longer a gift.

Not all lenders have the same attitude with regard to gifts, hence the suggestion from ACG...

This is another good reason to involve a broker when looking at situations like this...

ACG

getmore4less said:

ACG said:

Natwest would allow you to secure a charge on the property at the time of completion, but I think it would be for a monetary amount rather than a percentage. I am not sure if any other lenders allow something similar. 

If the parents secure a charge it is no longer a gift.

I dont make the rules.