To worry that DS is putting the deposit down for a joint mortgage?

[yunhi]

DS is 26 and his girlfriend is 21. He has a large amount of money that was used to purchase a flat from when his father died. His girlfriend recently moved in and now they are buying a house together. He's putting 100k into it and it will be a joint mortgage. Doesn't that mean if they split, she will be entitled to half of that? He says he isn't concerned about that at all. But AIBU to be slightly worried here?

[DexyMidnight]

P. S. Don't forget about the stamp duty. Our deed says I'll get (x) back out of the proceeds of sale then balance divided.
(x) = deposit and SDLT.

[DexyMidnight]

What everyone above has said. Our conveyancing solicitor added on the deed of trust to our general bill. I'm sure it cost nowhere near £600.

The solicitor who draws it up can only act for one affected person (typically best to have him/her represent the one who'd be disadvantaged by the arrangement I.e. The gf. Very important to avoid later denials that she hadn't appreciated what she was signing.

Sol will have a chat with gf and explain implications of signing in plain English.

Technically your son should then see a different solicitor but all he has to do if verify he's taken advice and understands.

[Luc187]

I deal with this quite often at work, you can have a legal document drawn up called a declaration of trust that will allow him to retain his original investment should anything happen. It will cost a few hundred pounds for this type of document but is worth its weight in gold. We draft them all the time for situations like this.

[WBWIFE]

So I bought a house aged 20 with my ex and put down 8k and he put down 2k.. stupidly didnt protect it as thought we would be together forever as wed been together for 5 years and bam, 6 months later he was gone and trying to get me to move out and sell the house 'for his half'.

I ended up seeing a solicitor and drawing a contract up so I had to pay him 5k monthly to him to pay him out of the house so I wasnt homeless!!

Please please get him to protect his side of it.

[Womaninred]

www.mumsnet.com/Talk/divorce_separation/3551348-Divorce-surprise?pg=2
Show him this. Mumsnet always lots examples of losing deposits when separation.

[dreichuplands]

We had a tenant's in common agreement to cover this issue on our first house bought in our 20's, (for much less). By the time we got married and had kids DH dropped it for subsequent houses. They are very hassle free.

[SilentSister]

DH and I bought our first flat at 21 before we were married and as co-owners. A couple of our friends also did the same as just "friends" investing in property, and we all, from memory, just had an agreement drawn up at the same time as the purchase, detailing who put what in, and what the split would be on selling. DH and I also did wills detailing the same.

His relationship is unlikely to go the distance with his GF being so young Sad way to look at things. All of our friends bought at this age, and all ended up married. Anecdotal I know, but it can have a happy ending too

[Gatehouse77]

LizB62A

Tenants in common means each own it 50% unless you have additional paperwork to have unequal shares.
In our case, whilst I was putting down the deposit DH was paying the mortgage as I was at home with the children. For us, 50% was a good enough split.
It has also made our wills much easier to write up as we have protected our children for marriage after death and no one else can get their hands on what has been bequeathed to them.

[flirtygirl]

TriciaH87you are extremely vulnerable. And most people don't think a break up will happen until and when it does. Especially as it's a couple of years to go until you are on the mortgage.

If you break up you get nothing. He can choose to help the children or not. A verbal agreement means nothing.

[PurpleCrazyHorse]

My DBro got stung in this exact way, although his deposit was significantly less than £100k. His GF walked away with half of the equity in their flat despite putting zero deposit in. She broke up with him, so it wasn't even my DBro saying he loves her and wouldn't leave her, she left him.

[LizB62A]

DH and I are tenants-in-common not joint holders which was to protect my deposit money

How does that protect your deposit money? Do you still need some sort of legal document to show what your share of the house is?

[Gatehouse77]

DH and I are tenants-in-common not joint holders which was to protect my deposit money.

[SosigDog]

He needs to see a solicitor and ringfence his deposit or buy in unequal shares.

[Disfordarkchocolate]

I think the conveyancing solicitor will raise it and make it come across as the normal and sensible thing to do, mine certainly did and I only put in 2K more than my partner.

[SpoonOfPeanutButter]

I think your son needs to realise it isn't about being pessimistic thinking their relationship won't work, it's more about protecting the money that was left to him.

This. Totally agree.

[Helpmepleaseeeeeee]

Hi Op.
This may not be useful to you but when i bought a house with my DH (boyfriend at the time) he had a deposit of around £100k and i had £0 but we could then both jointly afford the mortgage and he just wanted a joint mortgage. I suggested that it was a bad idea and he said no i know you, you would never take the money if it weren't yours and i said that while i hoped he was right that if we had split you wouldn't know under what circumstances and it is actually easier to have sorted beforehand when you love each other rather than in the moment of a split where you may hate his guts! So we had an agreement added on to our mortgage ( I am sorry can't remember what it is called) but it basically said that if the house was sold then his £100k would be returned to him bfore any other paid in money or profit was spilt between us so still a 50-50 mortgage but his big lump sum would be protected. We have discarded it now we are married with a little boy but i think it made me feel more comfortable at the time

[SpoonOfPeanutButter]

Agree with PPs and don’t think YABU to be concerned.

If the GF is reasonable, she’ll happily either agree to a Tenants in Commons mortgage or will sign something stating that the £100k will return to your son if they split and the house is sold.

I’m a similar age to your son and bought a house with my (now) DH about 3 years ago. His parents gave us the deposit and I offered to sign something stating that if it relationship were to end, I would have no claim over that money. They declined the offer (it wasn’t £100k though!), but I was 100% happy to do it.

It’s not banking on the end of the relationship, it’s just a sensible precaution.

[howabout]

Ask him if they are committed enough to get married. If the answer is No then they are also not committed enough to be pooling financial assets.

The income disparity is such that there is not much difference in affordability between your DS being a single applicant and them applying jointly for a mortgage. This implies they are looking to mortgage up to the max which is not particularly wise in the current environment if they may later split and end up with a joint asset they have to sell. (If GF is in line for big pay rise then that puts a different complexion on the calculation)

[OnlyFoolsnMothers]

He should just protect his deposit in the paperwork- it isnt particularly difficult

[NoWordForFluffy]

Any conveyancing solicitor worth their salt will suggest protecting the deposit when they establish its source.

But as everyone has already said cancel the cheque it's very easy to protect. If your son is sensible and chooses to. He may take the advice differently if it comes from a solicitor rather than you anyway.

[AlaskanOilBaron]

I'd be very unhappy about this. My husband is all ready to put some of our assets in our children's names and I keep on brining up this possibility (probability, really).

Tread carefully, I guess, but do try to get your point across. Good luck.

[churchthecat]

He needs to legally ringfence the cost of his flat.

[Helpmepleasenow48]

They can be tenants in common - so the amount of deposit he puts in is his.

[stopwining]

*how much
Not eBay preach

[stopwining]

There is so much bad advice in this thread. It's very simple. His conveyancer will ask him and his GF how they want to purchase the house, tenants in common or joint tenants. They will be allowed to allocate the split by % based on eBay preach puts in as deposit and it won't cost any extra, it's just part of the house buying process