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?
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.
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.
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?
Thanks to everyone for the replies. I really appreciate the input.
The money I put into the purchase wasn't mentioned by the mortgage company so I assume they took it as part of the deposit. My daughter is more than aware of the situation between us regarding the money so that won't be an issue. She got her boyfriend to sign a 'disclaimer' form when the house was purchased so hopefully that won't come back to bite us.
The money I put into the purchase wasn't mentioned by the mortgage company so I assume they took it as part of the deposit. My daughter is more than aware of the situation between us regarding the money so that won't be an issue. She got her boyfriend to sign a 'disclaimer' form when the house was purchased so hopefully that won't come back to bite us.
Countdown said:
Yep - same here.
OP - from what I’ve read there is no formal agreement between you and your daughter. If that’s the case then (like it or not) it was a gift. If she chooses to repay you then all well and good but, as things stand, you have as many rights over the property as her boyfriend.
Interesting. I don't think it'll cause any issues and my daughter is very keen to pay me back! OP - from what I’ve read there is no formal agreement between you and your daughter. If that’s the case then (like it or not) it was a gift. If she chooses to repay you then all well and good but, as things stand, you have as many rights over the property as her boyfriend.
pork911 said:
OP I'm not digging you out, putting aside how their relationship survived this arrangement or how you ended up supporting it to the tune if £175k, how did it happen without your interest being secured at the time?
It is sort of secured with the signed form from the boyfriend. I think the rest of it is down to love of my daughter, and family responsibilities. She was desperate to have her own place and I did my bit to help her. Gassing Station | Finance | Top of Page | What's New | My Stuff