Helping someone with a mortgage deposit.

Obviously some people will do this with their kids etc and not necessarily expect it back.

But say you were to help someone out with their mortgage downpayment because it's in your interest to do so, is there any contract you can put in place to protect your money should they decide not to pay it back?

Should stress I'm not going to do this, was just thinking about it and surely it occasionally happens and causes a lot of disputes.
 

mcq10

Striker
Obviously some people will do this with their kids etc and not necessarily expect it back.

But say you were to help someone out with their mortgage downpayment because it's in your interest to do so, is there any contract you can put in place to protect your money should they decide not to pay it back?

Should stress I'm not going to do this, was just thinking about it and surely it occasionally happens and causes a lot of disputes.
Couples all the time I imagine.
 
Three years ago we lent the wife's sister £3000 interest free, to be paid back monthly over 2 years. She currently owes us £3000. Wish I'd thought of the contract idea!
It sounds like a really, really bad idea. Bet there's some absolute horror stories.
 

safcsafc

Midfield
Sort of what got me thinking. Say I gave my lass some money to help her with a deposit and we split up, can I force her to sign something where she agrees to pay it back if we split up (we aren't married).
Doubt it. Most mortgage companies will ask to confirm it's a gifted deposit and you wont hold any interest over the property.
If you have a signed agreement by the person you lent the money to they might use the fact you confirmed it was a gift as a way to get out it.
 

T_Bone

Striker
I’m sure you could get something legally drawn up. We lent a family member a substantial amount twenty odd years ago. They made a big profit on a house sale and despite saying we would be their first priority we had to wait years to get the money back from them.
We’ve only recently started talking again.
A few years ago our daughter bought a house with her then partner. We gave our daughter the deposit. It was paid into her bank account.
They split up soon after and her partner was demanding half of the equity in the house. It was a substantial amount. He included that deposit in the equity and I told him it shouldn’t be included as it was a gift to my daughter. Both names were on the mortgage.
He fought it and I had to seek legal advice. He won.
 
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safcsafc

Midfield
Three years ago we lent the wife's sister £3000 interest free, to be paid back monthly over 2 years. She currently owes us £3000. Wish I'd thought of the contract idea!
Does she have a genuine reason for not paying it back. Shocking if not
 

buster

Winger
Obviously some people will do this with their kids etc and not necessarily expect it back.

But say you were to help someone out with their mortgage downpayment because it's in your interest to do so, is there any contract you can put in place to protect your money should they decide not to pay it back?

Should stress I'm not going to do this, was just thinking about it and surely it occasionally happens and causes a lot of disputes.

As far as I know some mortgage companies insist that the loan becomes a legal gift , otherwise they take the loan into account when calculating if they can afford the mortgage .
 

Jelly Belly

Midfield
Doubt it. Most mortgage companies will ask to confirm it's a gifted deposit and you wont hold any interest over the property.
If you have a signed agreement by the person you lent the money to they might use the fact you confirmed it was a gift as a way to get out it.

This was the point I was going to make, you either have to confirm that it's a gift which nullifies the legal chances of getting it back or they have to declare it as a loan which the mortgage company will raise as a negative and effects their chances of receiving credit
 

a1970man

Midfield
Lent the wife's sister £1000 when she moved into a new flat for carpets and stuff on the condition that I got it back after
she'd moved in and the council had refunded her costs (which was all agreed).

After 3 months, many hints by me and her constantly out on the lash on facey, I asked her straight. "When do you plan on paying me back this £1000"

To which she replied "What are you talking about, I got the money through a week after I moved in and gave it to my sister to give to you!"

So I asked the wife "Where's the money?"

"Dunno, must have spent it on stuff like them clothes and that handbag 'n' that"

Fuming wasn't the word she basically blown the lot on clobber in one afternoon. We didn't speak for a few days after that.
 
Lent the wife's sister £1000 when she moved into a new flat for carpets and stuff on the condition that I got it back after
she'd moved in and the council had refunded her costs (which was all agreed).

After 3 months, many hints by me and her constantly out on the lash on facey, I asked her straight. "When do you plan on paying me back this £1000"

To which she replied "What are you talking about, I got the money through a week after I moved in and gave it to my sister to give to you!"

So I asked the wife "Where's the money?"

"Dunno, must have spent it on stuff like them clothes and that handbag 'n' that"

Fuming wasn't the word she basically blown the lot on clobber in one afternoon. We didn't speak for a few days after that.
I’d still be windmilling her now
 

Mackem00

Striker
Lent the wife's sister £1000 when she moved into a new flat for carpets and stuff on the condition that I got it back after
she'd moved in and the council had refunded her costs (which was all agreed).

After 3 months, many hints by me and her constantly out on the lash on facey, I asked her straight. "When do you plan on paying me back this £1000"

To which she replied "What are you talking about, I got the money through a week after I moved in and gave it to my sister to give to you!"

So I asked the wife "Where's the money?"

"Dunno, must have spent it on stuff like them clothes and that handbag 'n' that"

Fuming wasn't the word she basically blown the lot on clobber in one afternoon. We didn't speak for a few days after that.
:lol: A few days?!?!?!?!
 
Banks and Building Societies will be wanting to see where the deposit came from and one that I know of wanted a solicitors letter stipulating that it was a gift and not to be repaid.
 

Skippy

Midfield
Does she have a genuine reason for not paying it back. Shocking if not
She starts to pay it back, then something happens that she's not prepared for (like crashing the car) and she borrows it back again. If she was living an extravagant lifestyle or taking the piss, then I'd get the hump.
 

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