Helping out family

Edinburghlass_2

Make sure that all parties involved make out wills that include exactly what happens in the event of death by any of the parties as it seems your son and partner aren't married. In fact everyone should have a will as soon as they buy a house

http://forums.moneysavingexpert.com/showthread.html?t=933343

missile

Mrs_pbradley936 wrote: »

Forgot to mention that the problem is in raising the money to pay off the ex-husband. He wants about 30K and the mortgage which they have to clear is 26K hence the 56K figure.

So in reality you are loaning money to your son to give to his partner so she can pay off her ex-husband? I am sure you are concerned that she could be taking advantage of him and I hope you have asked your solicitor to check out the ex is not making unreasonable claims?

He is very fortunate to have parents who can and are willing to help.

bryanb

You could grant them a mortgage and have it registered at the land registry in the normal way. Whether they repay or not is not so important then as you have security for your loan whatever happens. This really can be done, see a solicitor.

Mrs_pbradley936

bryanb wrote: »

You could grant them a mortgage and have it registered at the land registry in the normal way. Whether they repay or not is not so important then as you have security for your loan whatever happens. This really can be done, see a solicitor.

Is that called "putting a charge" on the property? The solicitor will be doing that.

bryanb

It can be done that way, but also it could be like a normal mortgage where they pay monthly. Whether interest is added and at what rate would be up to you.

margaretclare

Mrs_pbradley936 wrote: »

Forgot to mention that the problem is in raising the money to pay off the ex-husband. He wants about 30K and the mortgage which they have to clear is 26K hence the 56K figure. They do not want to sell the house and unless we help them they will have to and move into rented. An unsecured loan is too expensive and the mortgage will not cover it because of the shared ownership.

Oooops. That sounds even worse than just lending £56K to your son.

If that was me, alarm bells would be ringing like mad.

Biggles

They do not want to sell the house and unless we help them they will have to and move into rented.

That really has to be the best way to go.

Especially as, from your (or your solicitor's) mention of the 7-year IHT rule, you are thinking of giving him the money (or does you solicitor think you are giving him the money?).

missile

IMHO, it is your money and your choice to give it to whoever you like. However is your only child? The other offspring will be very hurt when they (and they will) find out.

I guess his partner does not have anyone able / willing to help?

hollydays

I would just like to add that sometimes these agreements end when the child ended full time education,not when they reach 16,but if the child continued at college or sixth form,the agreement stillstands ,I found this out to my surprise ,once.(smallprint).

I also have a feeling that some people need help to stand on their own 2 feet,but giving too much help is sometimes not character building.It's a fine line,only you will know.

Biggles

What are the sums here (in terms of total value of house, valuation etc)?

If you did go down the route of funding him, it should perhaps be on the basis that he will then own the major share of the house (in proportion to the money put in by him v her). Then, when things go pearshaped, they can sell the house and you still get your money back.