Gifting Money Towards Daughter’s Mortgage

saralfenton

My daughter and her fiancé are about to purchase their first house. I am able to gift my daughter a substantial amount to help towards the deposit but I would like the amount safeguarded in case they separate in the future. Is it possible to have something written by the solicitor to say that in the event of them separating that amount plus half the profit should be returned to her? Is it also possible to have it written that in the event of her pre-deceasing me the gifted amount should be returned to me?

silvercar

Sounds like your daughter should have a pre-nup. This would detail what her and her fiancé agree should happen if they split.

Her pre-deceasing you is a difficult question. She could have 6 children who you wouldn’t want to make homeless.

saralfenton

Thank you, I hadn’t thought about the children scenario. I was thinking it would just be the two of them so it would make sense to include if there were no children…

ACG

Some lenders will allow you to gift the money with stipulations, most wont. 
You could sort something out after completion, but if your daughter or her partner will not sign it after completion you could be stuck. 

Speak to a broker. 

[Deleted User]

Hi the lenders will only allow a certain amount that can be overpaid each year. 

killerferret666

You are after an agreement called 'Tennants in Common.' when buying.

I did exactly this with an ex partner. Specified the deposits and any additional profit to be split 50/50. Makes a seperation without marriage very easy. It also can be changed later on.

I originally had mine based on percentages not the amount of money. When purchasing i put 20% down and her 5%, So if we split, house sold and mortgage paid off, the 'profit' id get first 20% and her first 5% and whats left 50/50% split.

I actually changed this after 5yrs to be original deposits back only and everything split 50/50. I didnt like i was making alot more money due to the fact id just been able to put more down than her after so long together.

Wouldnt know about the pre-deceasing, sorry

Keep_pedalling

The thing about a gift is that it is absolute and you have no control over what happens to it. It is really down to your daughter to take the steps to minimise any risks. You can’t guarantee that the money would come back to you in the event of her death but she could do that through having it written in her will.