Quizzes & Puzzles3 mins ago
Lending money
4 Answers
Hi guys,,my son is trying to buy a house with his girlfriend,and they need a good deposit.I would like to lend or give 'them' 10k to help them on thier way,but knowing how love runs and anything could happen in the future is it wise of me to draw some kind of contract up saying that the 10k would go back to my son or me should they split up and have to sell the house.
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You could put a restriction or charge on the property to protect your interest but this could put the potential mortgage lender off - if the house has to be sold, there may not be enough in the pot to pay off the mortgage and your loan.
You could draw a contract up with your son which, if done properly, would be legally binding. The problem would be enforcing it - if he couldn't pay because he hasn't got the money you can't get blood out of a stone.
An alternative would be to buy the house with your son and his girlfriend. You would own the house as tenants in common, with your son and girlfriend owning 45% each and you owning the remaining 10%, as an example. Or a 40/40/20 split.
This would need to be given very serious thought as there are implications, but it would protect your interest.
If you do consider this get proper legal advice first.
You could draw a contract up with your son which, if done properly, would be legally binding. The problem would be enforcing it - if he couldn't pay because he hasn't got the money you can't get blood out of a stone.
An alternative would be to buy the house with your son and his girlfriend. You would own the house as tenants in common, with your son and girlfriend owning 45% each and you owning the remaining 10%, as an example. Or a 40/40/20 split.
This would need to be given very serious thought as there are implications, but it would protect your interest.
If you do consider this get proper legal advice first.
As I've said on here before, when I got together with my girlfriend (now my wife) and we bought a house together I put significantly more into the initial cost than she did. Can't even recall how much more now, about �14k I think.
Anyway, we had a legal agreement drawn up that the first �14k of any sale proceeds in the event of a split went to me before the balance was divided 50/50. Very simple contract signed by both and held by the solicitor. I don't see why it wouldn't be equally valid here.
Anyway, we had a legal agreement drawn up that the first �14k of any sale proceeds in the event of a split went to me before the balance was divided 50/50. Very simple contract signed by both and held by the solicitor. I don't see why it wouldn't be equally valid here.
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