My Parents providing deposit, house in Partners name

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IrritableFTB
IrritableFTB Posts: 8 Forumite
in Mortgages & endowments
Good Afternoon!

Me and my partner are currently in the process of buying a house, we're due to sign contracts next week but we've hit a sticking point:

Basically, the deposit for the house is from my parents, but the house and mortgage is in my partners name, due to me being a naughty (or stupid) boy with credit cards in the past. We've both agreed to split the monthly mortgage payments 50/50

My parents are fine with this being a gift, however want some assurances that should things go belly up between me and my Significant Other (hope for the best, prepare for the worst) that I can get out what I (and they) have put in. Just to clarify, they're fine with the deposit being a gift and DO NOT want that money back, they just want to see my back covered (such a lucky boy)

Is there anything that can be done, we've looked into declarations of trust but this seems to be a dead end...
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  • IrritableFTB
    IrritableFTB Posts: 8 Forumite
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    I'm also fully aware that the first paragraph is grammatically incorrect, I'm not buying a house or signing any contract so please don't get pernickety
  • kingstreet
    kingstreet Posts: 38,764 Forumite
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    Anything which tries to "secure" the gift is going to undermine the declaration which says its a gift and no interest will be taken.

    I don't know how the parents will achieve their objective and the lender options for such a case will be limited.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    They could gift it to you and then with a joint interest you could protect your contribution being on deeds and mortgage.
  • Mojisola
    Mojisola Posts: 35,557 Forumite
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    IrritableFTB wrote: »
    Basically, the deposit for the house is from my parents, but the house and mortgage is in my partners name

    We've both agreed to split the monthly mortgage payments 50/50

    You'll need an agreement between you both as to what happens if you split up.

    The value of the deposit could go to you before you split any other equity in the house.
  • YHM
    YHM Posts: 650 Forumite
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    Just because you are splitting the monthly payments 50 / 50 doesn't mean that the equity needs to be split in the same one.

    Look into whether it would be more appropriate for you to own the property as 'Tenants in Common'. This will protect the deposit you have put in
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
  • kingstreet
    kingstreet Posts: 38,764 Forumite
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    The OP says no joint mortgage/purchase option due to adverse. Are others seeing something I'm missing? :o
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • sal_III
    sal_III Posts: 1,953 Forumite
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    Might be possible if you go for 2 names on the deed, 1 name on the mortgage and deed of trust. But AFAIK only HSBC is happy with that mortgage arrangement.
  • IrritableFTB
    IrritableFTB Posts: 8 Forumite
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    kingstreet wrote: »
    Anything which tries to "secure" the gift is going to undermine the declaration which says its a gift and no interest will be taken.

    I don't know how the parents will achieve their objective and the lender options for such a case will be limited.

    Cool, its not attempting to 'secure the gift', the gift is exactly that, a gift. More attempting to secure 50% of a (potential) 25 year investment.

    Having spoken to our conveyancer, he's said a Declaration of Trust isn't something HE could do, as it would be a conflict of interest between himself and the money grabbers, but an external party could.
  • IrritableFTB
    IrritableFTB Posts: 8 Forumite
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    sal_III wrote: »
    Might be possible if you go for 2 names on the deed, 1 name on the mortgage and deed of trust. But AFAIK only HSBC is happy with that mortgage arrangement.

    HSBC you say... Thats handy!
  • kingstreet
    kingstreet Posts: 38,764 Forumite
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    sal_III wrote: »
    Might be possible if you go for 2 names on the deed, 1 name on the mortgage and deed of trust. But AFAIK only HSBC is happy with that mortgage arrangement.
    Gifted deposit from non-relative of the applicant?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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