Family loan and investment

kremmen

I have already sent £95k to my son to purchase a property for me in Dubai as I'm not currently there.

His girlfriend has a work permit and with her income is able to get a mortgage with my money.

All this has happened already and I sent over a very rudimentary document with salient facts but I was wondering if somebody had a template or idea so that the loan gets acknowledged.

Thanks

retiredbanker1

Loan?? What loan? It was a gift was it not? She could argue this.

Did you really send money on this basis?

Do Dubai authorities ask no questions about this?

kremmen

Indeed she could.

Maybe that's why I was asking.

If you have any useful information I would appreciate your input 🤷🏽

MyRealNameToo

You say it's a property for you so are you expecting it to be in your name or hers?

Has she gotten a conventional mortgage or a halal mortgage?

CliveOfIndia

On the surface, this sounds like it could be a right can of worms.

My interpretation - please correct me if I'm wrong - is ... : You've sent a sum of money to your son, to use as a deposit on a house in Dubai. The house is intended to be in your name, but your son's girlfriend will take out the mortgage in her name?

Much as we attempt to be helpful on here, I think you may need to talk to a solicitor who is conversant with the relevant laws. At the most basic level, you're going to struggle to get any money back from your son/his girlfriend if things turn sour.

I've no idea what the laws in Dubai are - is your son's girlfriend even allowed to use your money for a deposit? If she takes out the mortgage, does that mean the house is automatically in her name? Unless anyone here is fully conversant with the laws of both countries, I fear you may receive more bad advice (however well-intentioned) than good. Seriously, speak to a solicitor who knows about this stuff.

kremmen

https://forums.moneysavingexpert.com/discussion/comment/81889999#Comment_81889999

I'm expecting it's to be in her name and hopefully there are no problems but back of my mind says it's worth making it formal.

I'm sure it will be a conventional mortgage because she has the income in Dubai.

Thanks

kremmen

https://forums.moneysavingexpert.com/discussion/comment/81890048#Comment_81890048

Yep that sounds about correct.

I think take your advice and contact a solicitor to draw up a document.

Thanks

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/81890160#Comment_81890160

Dubai is "modern" so offers both halal and haram/conventional mortgages, as a general rule if you are in a muslim country you'd probably assume it's a halal mortgage not a conventional one.

So if it's her property not yours then are you expecting the money to be repaid at some point or the property to be signed over to you? It's unclear what you are trying to achieve and what needs documenting.

retiredbanker1

If you don't mind me saying how can you get someone to sign an agreement retrospectively? If your son passes the money over then its done.

Other have given you ideas but you should have taken advice before sending the money.

Ergates

No legitimate lender would give a mortgage where the deposit is also a loan. That would, effectively, be a 100% mortgage.

So, you either have to agree it's a gift (in which case she could just keep it and give you the middle finger) or she agrees it's a loan and then lies to the lender (thus committing fraud). I hope you have a good relationship with your daughter in law.

Though, given it's Dubai, you can probably quite easily find a few non-legitimate lenders.

benbay001

Ignoring for a moment the vast array of red flags..

If my father in law gave me a contract to sign on his terms for money id already received on the understanding that id just casually pay it back in a non legally binding way, it would get my back up massively.

My best advise is hope your original trust is not replaced, and that they pay it back without a formal agreement, which i think you have no chance of them agreeing to sign at this late stage.