How to advise DD

Prenups aren’t simply imposed, they’re negotiated, and must be fair to both parties. He can protects his assets from being considered marital property, and she can do the same for any savings and investments.

I wouldn’t advise her to go down the BTL route at all.

If they were to decide to marry, that would be the time for them to sit down together and discuss how they would achieve a sense of equity, so she is not disadvantaged in the event of children and worst-case-scenario if they were to divorce.

These are essential conversations to have prior to marriage and/or parenthood. Women get screwed over time and time again.

Being a landlord is not for the faint of heart and can be an almighty headache.

Any savings are also an asset and it’s against the law to “stash “ them away and not declare them in the event of a divorce.

Stocks and shares ISA would be far better than a buy to let. Really encourage her to invest what she would have spent each month on rent. Have her do some research on global equities and the power of compound interest.

I was also thinking similar throughout. I bought a house when I was 31 and partner 28. We had advice from family and my dad as an ex financial advisor but we decided things ourselves. MAybe offered the advice which is given above but let both of them make the decisions.

You and DD should watch the Rebel Finance School on YouTube. It starts tonight - it's free! - and she'll learn all about S&S ISAs. Much better than a buy to let.

Why are people running their marriage like a business?

I don’t think I’d like this arrangement. If they split up divorce does that mean she’s left with nothing? I think if she’s happy to proceed I’d get some financial advice from a professional. I also wouldn’t like his dad and step dad calling the shots.

Being a landlord would be really awful. Having a managing agent can be expensive. Tenants might mess her about and refuse to pay rent - it's hard to kick them out and she'd never be able to claim costs for damages in the house. I agree with the others about investing the money. I think if I were her I probably wouldn't mention this to my boyfriend, not given his attitude about prenups.

Stocks and shares are a doddle. You just have to accept that there will always be a way you could, with hindsight, have done better, and settle for doing well.
I think a lot of money is made by people pretending otherwise.

If I was you I’d be delighted for my daughter that she’ll be getting free accommodation and advise her to put her spare ££ into an ISA or pension. Being a landlord is a ballache.

Also, she’s nearly 30 - does she really want your input?

Sometimes the best way to make someone realise something isn't to tell them, it is to ask them. She should ask him "how do you envisage that working if we have children" and if he's a good man the penny should drop that this plan is leaving her vulnerable. If he can't come up with a solution that is fair to both, she doesn't move in with him (or marry him).

Managing agents are fairly useless in my experience, they tend to just forward on emails from the tenant and/or commission hideously expensive contractors they get a cut from.

F

She should have an investment but a stocks & shares ISA is much safer and easier than a BTL.

I definitely wouldn’t advise a BTL unless she actually actively wants to be a landlord. We became landlords unexpectedly when my husband inherited a tenanted property, and it’s been hard work and stressful. You also obviously pay tax on the income, and depending on how much the mortgage is there may not be much profit once all costs have been covered. She would also have to be prepared for any unexpected costs - 1 month after inheriting whilst we were still getting our heads round it all we had to pay £3k for a new boiler. It’s a lot to be responsible for

If I was her I would invest the money that would have been spent on a BTL or on renting somewhere and then if she did ever need to buy anywhere she’d be in a much better position with savings

Invest the money you would have used for a deposit, not in her name. You can give it to her later if she needs it.

Being a landlord isn't an easy pathway particularly with a mortgage (I am one, however mine are mortgage free). You would need to do a lot of research & work out a good area, do you know trades to get work done quickly. Don't just look at rental income but also property value increases mine have increased by 50-100%, in the time I have had them
Mortgage interest rates tend to be higher on BTL.
No first time buyer discount. Will she have the financial liquidity to evict & then repair if she gets a bad tenant.
I will want to be protective of my children & finances when they settle down, however I do also think it is important to consider the financial security & stability of any partners.
A possibility -
The trust & yourselves provide a deposit that is ring fenced according to the proportional percentage your daughter & her partner then purchase the rest as tenants in common with a mortgage. (Not purchased as joint tenants)
Example
Trust Deposit - 15%
Your deposit - 10%
75% split between daughter & partner 37.5% each

She needs independent financial advice about the housing situation.

A BTL means she will have a lot of responsibility, pay income tax on the income from it, have to pay for all the property safety checks, fix any issues, insurance etc.

I would be looking into her investing money into easy access if she needs it and then looking at stocks and shares ISA or just cash ISAs. Pension is great but it will be locked away until she is at least 58 so you don't want her to invest it all into a pension.

Any savings she has will also be a marital asset so the whole Trust thing does mean she might get shafted. This does completely shift the balance of their relationship. She needs advice and to go carefully.

I think you're getting ahead of yourself. You didn't offer to help her with a buy to let till his dad offered something. Why not let them get on with it, she's been paying rent and now it seems she won't, lots of opportunity to save. If they had split up in the last few years she'd have had to rent somewhere else .... no change then. If they stay together and get married they can buy a place together.

I think this is tricky. The important thing is that your DD is financially protected should the relationship end- so putting and savings or money gifts into an account she can’t touch unless she needs it is essential. If he insists on a prenup it should also protect any assets in her own name accrued during the marriage as her own and not marital assets - tho UK does not recognise prenups in law. It may also get old being in a relationship where the wealth he brings is not shared - especially if they get married. If he doesn’t want to share his full life with her, how much of a partnership will they ever really have? For how long can she live in a home that isn’t hers and feel like a full and active partner in the relationship? These are chats she needs to have with her other half. But personally my feeling is if you marry someone wealthy, then you should become wealthy and not be held in some kind of asset limbo like a secret mistress.

So is your DD going to give up work if they have DC?

It doesn’t sound much of a partnership!

Why can’t they just buy the house together and sign an agreement to ring fence his deposit in the event of a split?