Helping someone with a mortgage deposit.

BigPeter

Goalkeeper
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.
It's an absolute joke our legal system mind.
Hope you wen't and brayed the bastard be worth the slap on the writs.
 

42

Midfield
I know a lad who lent his daughter’s partner 15k to clear debts. He then gifted the two of them a further 20k to help with a deposit on a mortgage.

6 months later the lad walked away having not paid a penny of the 15k back. The twat then managed to take a large chunk of the equity in the property (inc the deposit).
Being that much in debt probably means he couldnt be trusted with money from the outset. Its idiotic giving money to someone like that without any legal agreement drawn up. Owa lass has a few debts from before we met, I could pay them off for her but sometimes tough love is the best for the long term as she needs to realise that there isnt a magic money tree & she needs to do the graft to pay for her past mistakes and actually learn the value of money.
 

janiep

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.
Don't do it.
 

Mackem00

Striker
When you transfer money electronically and put the reason for transfer as a "loan to friends or family" in the click box would this not cover that person in any way?
 
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.
Declaration of trust should cover that.
 
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.
A solicitor would put together a loan agreement. If I ever gave my daughter a substantial sum I would get an agreement drawn up that it would be repayable if house was sold with interest payable. Just in case of divorce. She isnt married and I probably wont give her too much yet but it may happen a bit down the line.
If you lend to friends or family, be prepared to either lose the money, lose the friend or both
This.
There's a page here about private loans, albeit 12 years old:

Subscribe to read | Financial Times

Looks like you can get a legal document regarding the loan drawn up, if need be. Also, some tax implications if there's interest involved.
As long as it's less than £1000 a year no tax would be payable.
Money is the root of all evil, turns the basic human into Gollum. Friends and family especially.
Love of money not money.
“The love of money is the root of all evil”, not money itself. Money makes the world go round.
This
 
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Titus

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.
I know its a bit different with family, but if the person that I had personally given the money to had not made contact to confirm it's been returned to a mutually agreed third party, I would still chase them for the money. Whatever has happened to it after is irrelevant, because ultimately I never got, or received notice of the return of payment.

Like I say, bit different in that case like. I would've just burnt all the clothes instead...
 

riffraff

Striker
Similar stories are heard all the time on building sites concerning work done on prospective in laws properties. Kitchens
/bathrooms/ wardrobes fitted etc in the thought that the bairns gonna be moving in with the property owner. A few months later theyve split up or the newly impressed with the idea of their own home bairn decides they want a place of their own..........which means they’re obviously not moving in with their bf/gf/whatever this weeks term is.
 

Titus

Striker
When you transfer money electronically and put the reason for transfer as a "loan to friends or family" in the click box would this not cover that person in any way?
Need to start putting this on all my expenditures for later reclaim :D
 

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