Bank of Dad helping son buy a house with non legal partner

Loza2016

user1977 said:

Loza2016 said:

I believe it was a deed of trust we signed. It was 2010 and since sold the property so haven’t got the details. 

As someone has said if they do get married eventually it would change things but does give you protection until then. 

"You" in this case being the OP's son. The OP waves goodbye to their money at the time they gift it. 

Correct I should’ve worded it better 

Keep_pedalling

When it comes down to it the decision on whether to make a pre nup or not is down to the OPs son not him. He could insist that his son makes one or he does not get the money but his son could tear it up as soon as the gift is made. A gifted deposit has to be an absolute gift with no conditions applied.

Bluebell1000

Have you looked at family offset mortgages? Try a broker to help you. One example is https://www.barclays.co.uk/mortgages/family-springboard-mortgage/ but there are others.

silvercar

Rosa_Damascena said:

I read a story in the Sunday Times about a widow who wasn't aware of the whopping loan her father-in-law had arranged with her husband to allow them to buy the house of their dreams. She found out soon enough after he had died and FiL wanted his money back. 

It actually sounded quite reasonable when I read the FiL's side of the story!

I also read that. Interesting read, I had sympathy with both sides. I did wonder if there had been some glossing over the fact that the “loan” would have had to be dressed up as a “gift” to satisfy the mortgage lender and the “loan agreement” between the father and son was not explained to the daughter-in-law. 

BPL

silvercar said:

Rosa_Damascena said:

I read a story in the Sunday Times about a widow who wasn't aware of the whopping loan her father-in-law had arranged with her husband to allow them to buy the house of their dreams. She found out soon enough after he had died and FiL wanted his money back. 

It actually sounded quite reasonable when I read the FiL's side of the story!

I also read that. Interesting read, I had sympathy with both sides. I did wonder if there had been some glossing over the fact that the “loan” would have had to be dressed up as a “gift” to satisfy the mortgage lender and the “loan agreement” between the father and son was not explained to the daughter-in-law. 

I think I would advise the couple has life insurance to cover this eventuality?

SuseOrm

Keep_pedalling said:

You can’t protect a gift as it would no longer be your money. You can protect a loan, but your son would struggle to get a lender to agree to a mortgage if you just loaned him the money.

Why not just make the gift and let him manage his relationship, it is what we did with both our children. 

My ex mother-in-law did exactly that with my ex-husband’s new wife unfortunately what she’s done is divorced him.  kicked him out and has benefited from a lifetime of my ex mother-in-law’s work and fiddled our kids out of their inheritance

Keep_pedalling

Rosa_Damascena said:

I read a story in the Sunday Times about a widow who wasn't aware of the whopping loan her father-in-law had arranged with her husband to allow them to buy the house of their dreams. She found out soon enough after he had died and FiL wanted his money back. 

It actually sounded quite reasonable when I read the FiL's side of the story!

Not read the story as it is behind a pay wall, but this is the problem when these things are done in secret. I can’t really have a lot of sympathy for the FIL who along with his son must have declared that the £200k was a gift on the mortgage application. His son could have also covered the loan with life insurance, the poor widow had no part in the shenanigans and had the shock of this demand on top of the loss of her husband.

BPL

Keep_pedalling said:

Rosa_Damascena said:

I read a story in the Sunday Times about a widow who wasn't aware of the whopping loan her father-in-law had arranged with her husband to allow them to buy the house of their dreams. She found out soon enough after he had died and FiL wanted his money back. 

It actually sounded quite reasonable when I read the FiL's side of the story!

Not read the story as it is behind a pay wall, but this is the problem when these things are done in secret. I can’t really have a lot of sympathy for the FIL who along with his son must have declared that the £200k was a gift on the mortgage application. His son could have also covered the loan with life insurance, the poor widow had no part in the shenanigans and had the shock of this demand on top of the loss of her husband.

There couldn't have been a mortgage as they won't take a loan into account so it must've been a whopping sum. £££

Keep_pedalling

BPL said:

Keep_pedalling said:

Rosa_Damascena said:

I read a story in the Sunday Times about a widow who wasn't aware of the whopping loan her father-in-law had arranged with her husband to allow them to buy the house of their dreams. She found out soon enough after he had died and FiL wanted his money back. 

It actually sounded quite reasonable when I read the FiL's side of the story!

Not read the story as it is behind a pay wall, but this is the problem when these things are done in secret. I can’t really have a lot of sympathy for the FIL who along with his son must have declared that the £200k was a gift on the mortgage application. His son could have also covered the loan with life insurance, the poor widow had no part in the shenanigans and had the shock of this demand on top of the loss of her husband.

There couldn't have been a mortgage as they won't take a loan into account so it must've been a whopping sum. £££

There was a mortgage as the story headline says it was for a deposit. The loan agreement was apparently drawn up by the two men, but I am assuming that the mortgage company were told the same as the wife that it was a gift. 

getmore4less

jkrbec said:

BPL said:

My solicitor says that's not possible sadly.  If you have any more detail how you did it?

I’m not sure what’s possible with a gift but i’ll explain what me and my partner have done recently

My partner was putting down 50k deposit but I am paying the mortgage, so we will be tenants in common and our solicitor has drawn up a deed of trust with a formula, so at the time of sale we each get a % based on our contributions at that period of time

Hope it's not using full mortgage payments as that does not work properly.

it's a very simple  split of £50k/(£50k+ mortgage)   and mortgage/(£50k+ mortgage)