Cash from Family towards a deposit.

6022tivo

bpj said:

6022tivo said:

deano2099 said:

bpj said:

Others have alluded to this, but it would be straightforward for the new owners to purchase with unequal shares, or set out exactly how the proceeds of any sale should be split between them (as long as they both agree).

So if the only concern is that the gift should stay with the family member, rather than the giver wanting to get their money back, that would seem the simplest option.

Yup - essentially this is a gift to just one of the couple and should be treated that way. That would presumably mean the deposits they're putting in are unequal and both parties would want to protect their share should the relationship break down, but that's a very common situation and no different to if one party just had a larger deposit than the other.

Yes. That's about it. 

So is that how I go about it. 

I gift my child the sum, and he brings that to the mortgage deposit party? 

At somepoint in the future if things go pear shaped, he can stipulate what his portion of the deposit was? 

This would need to be agreed during the purchase, not in the future.

Over a cup of coffee? Whilst watching the football tonight? With a legal document called "let's agree something"...

I'm still unsure?

user1977

6022tivo said:

bpj said:

6022tivo said:

deano2099 said:

bpj said:

Others have alluded to this, but it would be straightforward for the new owners to purchase with unequal shares, or set out exactly how the proceeds of any sale should be split between them (as long as they both agree).

So if the only concern is that the gift should stay with the family member, rather than the giver wanting to get their money back, that would seem the simplest option.

Yup - essentially this is a gift to just one of the couple and should be treated that way. That would presumably mean the deposits they're putting in are unequal and both parties would want to protect their share should the relationship break down, but that's a very common situation and no different to if one party just had a larger deposit than the other.

Yes. That's about it. 

So is that how I go about it. 

I gift my child the sum, and he brings that to the mortgage deposit party? 

At somepoint in the future if things go pear shaped, he can stipulate what his portion of the deposit was? 

This would need to be agreed during the purchase, not in the future.

Over a cup of coffee? Whilst watching the football tonight? With a legal document called "let's agree something"...

I'm still unsure?

They can talk to their solicitor about it. It's for the couple to sort out between themselves, not you.

theartfullodger

I've done this: Lender demanded I sign a statement that it was a gift not a loan.  

Obvs I'm a man of my word (no, not an ironic remark..)

LHW99

theartfullodger said:

I've done this: Lender demanded I sign a statement that it was a gift not a loan.  

Obvs I'm a man of my word (no, not an ironic remark..)

Yes, so have we, and split it equally between the couple. Made everything simpler. Life changes, whatever you do they will have to sort things out if problems arise, and IMO you won't want to be a close part of it.

grumiofoundation

6022tivo said:

bpj said:

6022tivo said:

deano2099 said:

bpj said:

Others have alluded to this, but it would be straightforward for the new owners to purchase with unequal shares, or set out exactly how the proceeds of any sale should be split between them (as long as they both agree).

So if the only concern is that the gift should stay with the family member, rather than the giver wanting to get their money back, that would seem the simplest option.

Yup - essentially this is a gift to just one of the couple and should be treated that way. That would presumably mean the deposits they're putting in are unequal and both parties would want to protect their share should the relationship break down, but that's a very common situation and no different to if one party just had a larger deposit than the other.

Yes. That's about it. 

So is that how I go about it. 

I gift my child the sum, and he brings that to the mortgage deposit party? 

At somepoint in the future if things go pear shaped, he can stipulate what his portion of the deposit was? 

This would need to be agreed during the purchase, not in the future.

Over a cup of coffee? Whilst watching the football tonight? With a legal document called "let's agree something"...

I'm still unsure?

I expect the poster assumed (sensibly but in this case incorrectly) it was rather obvious they meant a legal agreement?

Brie

The one thing I can't see mentioned is deprivation of assets.  

The person giving the gift (or loan doesn't matter) will be considered to still be in possession of the amount should they need to go to the local authority for any assistance with care - either in the home or otherwise.  Potentially the house would need to be sold to repay the "gift" to fund the individual's care.  Alternative is that the LA would put a lien on the property for when it is eventually sold.  

TheJP

My wife's parents gifted us a good chunk of our deposit. We were asked how we wanted to be legally stated in the deeds, my wife and her parents were clear it was a gift to both of us. Fast forward and i earn more, so pay more of the mortgage and bills, afforded my wife the ability to take unpaid maternity leave so she could spend more time with our children. 

Think carefully about the impact the loan gift could have on their relationship, does your son want to take this approach and if its a gift to him surely its up to him how he spends it?

tetrarch

Protecting assets in case of a subsequent relationship failure is something that seems to be incompatible with mortgage lenders' risk appetite.

Hypothetically - how would the following work?

Parents gift £100K to child, sign a form for the mortgage lender to confirm gift

1 year after loan,

Parent loans child £100K with "Interest free loan agreement, payable on demand"

Child gifts £100K to parent with documentary evidence to support

Does that leave a debt in case of relationship failure?

Regards

Tet

MobileSaver

tetrarch said:

Parent loans child £100K with "Interest free loan agreement, payable on demand"
Child gifts £100K to parent with documentary evidence to support

All the documentary evidence in the world won't hoodwink a court that the loan is still outstanding.

user1977

tetrarch said:

Does that leave a debt in case of relationship failure?

You still seem to be confusing things by getting the parents involved. Considering what ought to happen if the child's relationship fails is something to be considered and sorted out between the child and their partner - I wouldn't say it was normal or healthy for the parents to be holding the strings.