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Dad wants a share of property

13

Comments

  • namsoni
    namsoni Posts: 14
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    Thanks everyone for the replies. I've enjoyed the speculation on my gender, lol. To clarify, I'm a bloke.

    Also, the poster who said I didn't understand the basics on transferring equity, yes, that's correct. However, if I thought it was just a casual thing, as was suggested then obviously I wouldn't have come to this forum and posted this: "I'm worried if I tell my bank now, that I will either have to start a whole new mortgage application which might at best add a couple of weeks onto the process, or worst, mean I lose my mortgage approval." I did end my post on a more optimistic basis, mainly to make myself feel better, but if thought it was something that was simple, I wouldn't have sought out your advice - which was incredibly helpful I might add, along with everyone else's (except the amusing father-daughter speculation lol).

    As a little background, my dad has previous form in this. For two years, he kept going back and forth on helping me to buy a house. For example, out the blue a couple of years ago, he mentioned being able to help me with £150,000 to buy a place, and then I viewed somewhere on that basis. I came back to him about the property, and suddenly that amount changed to £20,000 as he decided to buy a place himself in his home town (which he never did). Shortly after I wrote him an email saying to not mention this to me again, as its utterly unfair to mess someone around like that.

    He didn't say anything for a year, and then when he came to visit me, he mentioned it again. I told him to not say it unless he genuinely means it. I stupidly believed it, and he's done almost the same again.

    I had decided yesterday to pull out completely, but when I said this, he clearly doesn't want me to blame him for the house sale falling through (which I probably would have, as he should never have wrote the email saying the money was a gift, without mentioned all the other concerns he had), so he's had a bit of a panic. He's now suggested an unsecured loan agreement. I've decided to give this one last try on that basis, with as many feasible protections for both me and him as is possible. If its still not good enough, then we're done.

    My gut feeling is that all of you are right, and I should just pull out but the prospects of me buying on my own without him are slim to none. I've got £40k in savings, and could feasibly save around £10k a year, but the issue is that I'm not going to be able to borrow enough.

    Ps I want to say, I really don't want to come across as ungrateful. I'm luckier than a lot of people, and am grateful to my dad for willing to gift me £50k. The issue is the shifting sands.
  • Candyapple
    Candyapple Posts: 3,384
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    Can you not find a property cheaper than £335k so you can buy on your own savings? Are you buying a house?

    namsoni wrote: »
    He's now suggested an unsecured loan agreement. I've decided to give this one last try on that basis, with as many feasible protections for both me and him as is possible. If its still not good enough, then we're done.

    I highly doubt any lender will accept a £50k loan to form part of a deposit. Or were you not planning on telling the bank and making an agreement between you and your dad? If the latter, you are committing mortgage fraud....
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
  • hazyjo
    hazyjo Posts: 15,468
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    As above really - if it's a loan, it's unlikely they'll let you borrow that and let you borrow on a mortgage. It's debt on more debt. They'd not let you borrow the deposit on a credit card or loan - bit like that, but (presumably) without the interest.


    Whereabouts are you looking? Changing areas may knock that £50k off. Perhaps a slightly longer commute?


    If your dad has form for this, I definitely wouldn't want to take his money unless it was truly gifted. Who's to say he won't want it paid back sooner or might need it and find it hard to understand you simply can't just get your hands on that cash?
    2023 wins: *must start comping again!*
  • Jox
    Jox Posts: 1,651
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    Sounds like you need to take what your dad says with a pinch of salt, probably best to buy yourself without this involvement.

    My parents "gifted" me for my deposit then a month later asked for it back and I had to get a loan to pay them back which took 7 years.

    12 yrs later, my husband's brother gifted us money towards the purchase of our house and my husband and I managed to pay him back within 5 months without him asking for it so we were proud of ourselves for that!

    There's always some string attached when money is given.
  • namsoni
    namsoni Posts: 14
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    Jox wrote: »
    Sounds like you need to take what your dad says with a pinch of salt, probably best to buy yourself without this involvement.

    My parents "gifted" me for my deposit then a month later asked for it back and I had to get a loan to pay them back which took 7 years.

    12 yrs later, my husband's brother gifted us money towards the purchase of our house and my husband and I managed to pay him back within 5 months without him asking for it so we were proud of ourselves for that!

    There's always some string attached when money is given.

    Eeesh, what a nightmare.

    I think I've been trying to make something work, that simply won't. I've messaged my dad to say thanks but no thanks, and asked him to cover the £2000 I've spent so far.

    Thanks everyone for your advice.
  • xylophone
    xylophone Posts: 44,140
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    Is your father in a position to lend you the whole of the purchase price of a property?

    If so, a formal loan agreement could be drawn up by a solicitor whereby you would repay your father (interest/capital) over the term agreed and he would take a first charge on the property - ie, he would be your mortgagee.
  • teddysmum
    teddysmum Posts: 9,471
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    Actually your father's requested 23% share of the house's value is not worth less than his contribution to the deposit, because you will have put in your share of the deposit and made the monthly payments.
  • G_M
    G_M Posts: 51,977
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    This is a real shame.

    In these days, I really feeel for young people. Affording a property nowadays for a young person is so much harder than it was 'in my day'.

    I used to be a strong advocate of the young standing on their own 2 feet and earning what they need. But watching my nephews and nieces struggle I am now much more sympathetic to the idea of parental/family help to get started with housing. In the south especially, it's often the only way.

    You father clearly has resources. He also clearly wishes to help. But he also clearly has issues (of trust? of his own future financial security? whatever) and this is making it really hard for you to plan & move forward.

    :(
  • John-K_3
    John-K_3 Posts: 681 Forumite
    AnotherJoe wrote: »
    And its easy to say "buy what you can afford", where my daughter lives there is nothing thats buyable.
    That doesn’t seem likely. I suspect that every house that comes for sale sells eventually.
  • AnotherJoe
    AnotherJoe Posts: 19,622
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    Tom99 wrote: »
    That's interesting. How do you think you will be taxed when the house is sold, income tax or CGT?


    Good question, I have no idea. Maybe neither but as interest ?
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