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Legal contract for house purchase

(3 Posts)
FatBottomedGal Tue 30-May-17 10:44:42

Apologies if this isn't the right group, I couldn't find one for legal questions!

My mum is selling the family home next week, and wants to give a large sum of money to my brother and I to be used as deposits for our first homes. My brother is not very financially capable, and has a partner who is even worse. They both have a small amount of debt from living in a flat that neither can afford, he is planning to pay off both of their credit cards with the inheritance before using the rest for buying a home.

My mum wants a contract drawn up to specify what money belongs to who in the event that they separate and sell the home. His girlfriend won't be putting any money into the deposit, and will be making smaller repayments than him. What would your suggestions be on what's fair for her to legally own if they separate? If it was left to my brother, he'd probably give her half. If it was left to my mum, she'd give her nothing.

Any advice would be really appreciated, my mum is just worried that the money she gives him will end up going to his girlfriend if they break up (who as you may be able to tell, she doesn't like very much!)

Allthebestnamesareused Tue 30-May-17 10:50:34

When the brother and his GF go to buy the house she can ask the solicitor doing the conveyancing to draw up a very basic trust deed stating that the money is a loan to them and should be paid back to her after paying off the mortgage. she can then relend the money to her son if he buys somewhere else on his own with a new "oan". Alternatively she can own a fixed share in the property for the amount she is putting in. However the mortgage lender may then want her to be a party to the mortgage.

Also a mortgage lender may not want to lend to your brother and gf if the whole deposit is provided by Mum as they have not shown they can save to afford it although there are some companies that will (at a higher rate of interest)>

FatBottomedGal Tue 30-May-17 11:26:46

Thank you so much! I wasn't aware that lenders charge more for people with no savings history - although that makes perfect sense.

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