Helping our kids with a mortgage deposit.

[mickey house]

Originally Posted by Mr Tom Morrow

Don't underestimate how much there will be!

I spend quite a bit of time around my Sons. His Partners Dad is a spark so has done all their light fittings, security lights and will be doing the CCTV system soon. Good, saves me going up in that horrible fibreglass!

See more...

Sounds like you have got away lightly As you know I do the same (sparks) so will no doubt do the electrics, alarm and cctv. I also hate going into peoples lofts because of the dust, the installation and the balancing on the joists (just one false move and I'm through the ceiling). It's worse in the summer, and many a nights I've slept badly due to itching and an uncomfortable chest. I no longer do rewires as it's just not worth the hassle, so my visits to lofts nowadays are usually brief.

[Jan]

Would a simple IOU suffice?

[Omega1]

Originally Posted by Mr Tom Morrow

Oh, as an aside I really should have transferred the money direct to my Son before he instructed a Solicitor.
That Solicitor wanted me to jump through hoops not regarding the 'gift' but in relation to money laundering regulations. Wanted evidence of where we had got the money from, how long we had lived at our address, bank statements, proof of identity, Passport copies and the list goes on.

I got around that by parachuting the money to the Mortgage Broker my Son was using and he then transferred it to the Solicitor. Job done.

See more...

We had the same issue last year in gifting money to our daughter- what a performance.

[EssexSue]

Originally Posted by Mr Tom Morrow

Oh, as an aside I really should have transferred the money direct to my Son before he instructed a Solicitor.
That Solicitor wanted me to jump through hoops not regarding the 'gift' but in relation to money laundering regulations. Wanted evidence of where we had got the money from, how long we had lived at our address, bank statements, proof of identity, Passport copies and the list goes on.

I got around that by parachuting the money to the Mortgage Broker my Son was using and he then transferred it to the Solicitor. Job done.

See more...

Oh God Tom you are not kidding. The recent money we gifted took ages to transfer with all the limits. That said moving our own money between accounts is also a 24 act drama.
Meanwhile the real money launderers shop in Harrods and the like!

[mickey house]

Originally Posted by EssexSue

Oh God Tom you are not kidding. The recent money we gifted took ages to transfer with all the limits. That said moving our own money between accounts is also a 24 act drama.
Meanwhile the real money launderers shop in Harrods and the like!

See more...

You also get quite a few money launderers in Costa

[EssexSue]

Originally Posted by mickey house

You also get quite a few money launderers in Costa

See more...

Yep Costa and Harrods!

You get everything in Costa. 😂

[Leggibone]

How about looking at an inter generational or spring board type mortgage, the money stays yours the you can gift it back to them in 3-5 years without all the legal hoop jumping (or if it all hits the proverbial you have that money and can use it to help out on the get out)

Here’s another take on it... are the partners parents/savings going to end up of equal value once the whole thing comes to fruition?
Otherwise advise them to consider a deed of trust or something in writing that returns said £xxx to you child on sale of the home.

[BevS97]

Originally Posted by Lisbon

We are also wondering about this as our children get to the age where they may leave, just think it's so sad that we now live in a time that hard working people can't afford a property where they have grown up and work without the help of their parents
Rob

See more...

I also think it’s sad that we are thinking about the impact of divorce / splitting up when they are just getting started.

[josh071189]

My parents and my wife's parents helped us with our house deposit (we are moving into a new build in July/August) - our parents have contributed pretty much everything to the house deposit.

We came to an agreement with both sets of parents that we would see this as a 'gifted loan' rather than assuming it isn't going to be paid back. Luckily everyone involved really does get on - to the point our parents have their own whatsapp chat without us! - we plan to begin repaying each pair of parents once we move in, our parents have lent us this huge sum of money to essentially 'help us get on the ladder' - once we are on it, repaying each set of parents won't be too hard in monthly installments but we intend to pay every penny back.

We haven't drawn up a contract or anything official but having been together for 10+ years (since we were 18) - both my wife and I, and our parents implicitly trust each other that all money will be repaid. I guess my only advice would be to look at what you / your child's partner are looking to help with and draw up an agreement (whether formally or not) from there. Good luck!

[Pumba75]

Originally Posted by laurad107

I’m a mortgage adviser and there are ways to do this. Go see a mortgage adviser and they’ll let you know which lenders are ok with the scenario and the conveyancer will be able to deal with it.
If your son says it’s a loan most lenders will have an issue with that.

See more...

OP, this is the post to take most notice of on this thread. Go see a professional.

As well intentioned as it may be, there are a number of other posts on this thread that contain incorrect information.