Mortgage query
Discussion
My daughter and her boyfriend moved into a house last year. She had savings - along with a LISA - which she put down as a deposit, and she took out a mortgage. Her boyfriend didn't want to commit money to the house (which went down well!) so I lent her the rest.
Unless the relationship goes pear-shaped, at some point, presumably, the boyfriend will decide he does want to commit to the house (and her) and will therefore need a mortgage to pay my share back?
I'm not sure how this can/will happen as there is already a mortgage on the house. Would she have to bin her mortgage and start again with a joint one?
Unless the relationship goes pear-shaped, at some point, presumably, the boyfriend will decide he does want to commit to the house (and her) and will therefore need a mortgage to pay my share back?
I'm not sure how this can/will happen as there is already a mortgage on the house. Would she have to bin her mortgage and start again with a joint one?
maccboy said:
My daughter and her boyfriend moved into a house last year. She had savings - along with a LISA - which she put down as a deposit, and she took out a mortgage. Her boyfriend didn't want to commit money to the house (which went down well!) so I lent her the rest.
Unless the relationship goes pear-shaped, at some point, presumably, the boyfriend will decide he does want to commit to the house (and her) and will therefore need a mortgage to pay my share back?
I'm not sure how this can/will happen as there is already a mortgage on the house. Would she have to bin her mortgage and start again with a joint one?
If he's not on the mortgage then he can be added to it simply enough but he can't take out a separate mortgage in addition to the one already in place.Unless the relationship goes pear-shaped, at some point, presumably, the boyfriend will decide he does want to commit to the house (and her) and will therefore need a mortgage to pay my share back?
I'm not sure how this can/will happen as there is already a mortgage on the house. Would she have to bin her mortgage and start again with a joint one?
If you are talking about the deposit funds that you paid, then he would have to find that from his own funds, you nor your daughter should be accepting of him borrowing against the property to pay you back......
Sarnie said:
If he's not on the mortgage then he can be added to it simply enough but he can't take out a separate mortgage in addition to the one already in place.
If you are talking about the deposit funds that you paid, then he would have to find that from his own funds, you nor your daughter should be accepting of him borrowing against the property to pay you back......
Thanks for your reply. If you are talking about the deposit funds that you paid, then he would have to find that from his own funds, you nor your daughter should be accepting of him borrowing against the property to pay you back......
At the moment, I own a chunk of the house and I'm referring to if/when the boyfriend wants to buy that chunk off me.
maccboy said:
Not on the mortgage or deeds. I just paid to help my daughter buy it. I'm effect, I suppose it is a deposit.
Ok, understoood.Yes, he effectively needs to repay your deposit.
He can't get another mortgage against the property. He can be added to the current mortgage fairly easily.
Without knowing all of the numbers at play, is it realistic that he would ever be able to accumulate enough funds to reimburse you?
maccboy said:
Sarnie said:
How do you own a chunk of the house? Are you on the mortgage too? And the deeds?
Not on the mortgage or deeds. I just paid to help my daughter buy it. I'm effect, I suppose it is a deposit. As it stands, doesn't sound much of a problem, but if they ever get married and he hasn't paid it's going to get very messy.
Sarnie said:
Ok, understoood.
Yes, he effectively needs to repay your deposit.
He can't get another mortgage against the property. He can be added to the current mortgage fairly easily.
Without knowing all of the numbers at play, is it realistic that he would ever be able to accumulate enough funds to reimburse you?
No. It's not amount he can repay without a mortgage. I presume that when he's ready to commit, they'll need to get a joint mortgage and scrap her existing one. I don't know how viable that is though. Yes, he effectively needs to repay your deposit.
He can't get another mortgage against the property. He can be added to the current mortgage fairly easily.
Without knowing all of the numbers at play, is it realistic that he would ever be able to accumulate enough funds to reimburse you?
Hammersia said:
I'm pretty sure that technically (unless you have a contract with her / the mortgage company saying otherwise) you have actually gifted her the money. It wouldn't be yours to sell.
As it stands, doesn't sound much of a problem, but if they ever get married and he hasn't paid it's going to get very messy.
Yes. It was a gift. As it stands, doesn't sound much of a problem, but if they ever get married and he hasn't paid it's going to get very messy.
maccboy said:
No. It's not amount he can repay without a mortgage. I presume that when he's ready to commit, they'll need to get a joint mortgage and scrap her existing one. I don't know how viable that is though.
There needs to be some clear conversations going on to make that work Eg is your daughter going to be happy to pay an increased mortgage to repay you back when she already paid her deposit.The simplest thing would be to keep this property entirely as it is, in your daughters name only. Then in the future, if he decides he wants to get on board, then sell up the current property, repay your deposit funds and he can then add his own funds etc etc
maccboy said:
Hammersia said:
I'm pretty sure that technically (unless you have a contract with her / the mortgage company saying otherwise) you have actually gifted her the money. It wouldn't be yours to sell.
As it stands, doesn't sound much of a problem, but if they ever get married and he hasn't paid it's going to get very messy.
Yes. It was a gift. As it stands, doesn't sound much of a problem, but if they ever get married and he hasn't paid it's going to get very messy.
Sarnie said:
There needs to be some clear conversations going on to make that work Eg is your daughter going to be happy to pay an increased mortgage to repay you back when she already paid her deposit.
The simplest thing would be to keep this property entirely as it is, in your daughters name only. Then in the future, if he decides he wants to get on board, then sell up the current property, repay your deposit funds and he can then add his own funds etc etc
Thanks for your reply. The simplest thing would be to keep this property entirely as it is, in your daughters name only. Then in the future, if he decides he wants to get on board, then sell up the current property, repay your deposit funds and he can then add his own funds etc etc
I don't really understand much of your last sentence though.
Do you mean she'll need to cancel her mortgage and start again with him included?
maccboy said:
Thanks for your reply.
I don't really understand much of your last sentence though.
Do you mean she'll need to cancel her mortgage and start again with him included?
How much was the property purchased for?I don't really understand much of your last sentence though.
Do you mean she'll need to cancel her mortgage and start again with him included?
How much deposit did your daughter put in herself?
How much did you put in?
That will help to explain it.......
Hammersia said:
I'm pretty sure that technically (unless you have a contract with her / the mortgage company saying otherwise) you have actually gifted her the money. It wouldn't be yours to sell.
As it stands, doesn't sound much of a problem, but if they ever get married and he hasn't paid it's going to get very messy.
seems already messy. appears OP has no interest in the property but the bf may well have already.As it stands, doesn't sound much of a problem, but if they ever get married and he hasn't paid it's going to get very messy.
maccboy said:
Sarnie said:
How much was the property purchased for?
How much deposit did your daughter put in herself?
How much did you put in?
That will help to explain it.......
It was bought for £275k. My daughter put in £20k with an £80k mortgage. I put in £175k.How much deposit did your daughter put in herself?
How much did you put in?
That will help to explain it.......
If you have the funds - buy your daughter out of the mortgage for another £80K, then put the property in trust for her or any grandkids you might have. Charge your daughter and partner minimal rent, but put that away for the grandkids also.
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