Mums partner 6 yrs want's her to lend him all her life saving for a loan to buy larger house she won't be on deed for.

[Moniworries]

I'm worried even though on paper it's a short term loan to enable him to buy a house now until the current one is sold.

She's worried but she also trusts him.
They have been together for 6 years and to be fair he's a nice guy, he's got two adult DC and mum has two as well. They share one DC my brother

She lives in his house now but it's quite small he wants to buy a slightly larger house for family to visit and he will be a grandfather soon

They live quite rurally so harder for family to visit.

I'm concerned because he won't marry her he said it's too complicated with his adult children and also work shares and a family trust,he won't put her on the deeds.
He's never shared a Will even but has said brother will be looked after .

Mums put up with this because she's still got her divorce money ring fenced in case of problems which is about 250. That's her fail safe and she's been comfortable with her situation living in a nicer house than she could afford with that money for her should something happen

Technically he would be borrowing this money only on a short loan but she's worried as am I,what if something random happens to him in that time?

How could she get it back and what if it gets lost in complicated trusts?

theres a few suggesting making it a loan against the property. I’d only lend the money if my name was on the deeds. Don’t do a charge against the property, what if he decides not to sell. The money is a safety net she might need.

Yes and it's quite conceivable that there'll suddenly be some reason why he can't sell the house and oh no what a shame but don't you worry darling we'll sort it out eventually, you know I love you and what does it matter, we trust each other and ...yada yada yada.

It's just not smart. She needs to safeguard her security.

Anyway whether she lends the money or not they should own the family home together. He’s holding too much control.

Haven’t read the full thread sorry. The only way I’d be doing this is with a charge over the property in your mum’s name so she would get paid her 250k when the property was sold before anything goes into his estate etc. She also needs to speak to a solicitor about having something written up to say she can live there for life with her youngest if anything happens to him. Basically she needs to see a solicitor. It’s so important if be speaking to 2 personally.

I bet he does. The answer is NO. End of. Massive CF.

You could ask a solicitor that question but I don't think it would matter what happened to his company as the debt would be secured by a charge against the property. By it's nature that money is secured against the house.

No one could claim money from the property for an unsecured debt (e.g. customer or supplier of the business/mim's partner) until the secured debts were paid.

E.g. if your business went bust and you sold your property to pay debt the solicitor would settle the mortgage before any other money was distributed because the mortgage is secured by a charge against the property.

To say it's a faff - yes it probably is a little - but it's a faff that could stop your mum losing her life savings. You are comparing the faff of a charge to saying no to lending but what if it is the small faff versus yes to lending.

She could, but if things fall apart that could mean forcing him to sell in order to recoup the money and that might not be easy

There's rather too much info missing, especially around what the mum's own financial contribution has been so far, but I still agree that lending the money would be silly - at least without thorough professional advice

She is lucky he never changed his will back to his children as there would be nothing stopping him and she would have lost her money.

@Winter2020 thanks for the advice.

As I explained everything was going ahead above board until this complication and panic. So I've not looked into anything,she hasn't it's all happened quicky.
Now I have a broader idea of her options I'll pass it all on but my instinct is just don't get entangled and this is the unfortunate consequence of his decisions not to share anything.

Maybe get your mum to read this thread.

Apart from the clear risks and disadvantages to the lender, the financial advantages for the borrower are equally unclear.

Even if a charge was to be sought on the existing property (or other contract was put in place) that would cost anywhere between 1,000 and 2,500 plus VAT. Then there's your mum's loss of interest on her long term savings, which should be at a decent rate (I'm guessing around 5% pa minimum) so a loss of 12.5k at least, plus no guarantee of the same rate now.

A bridging loan for 250k would probably cost about 10k for a few months, so far cheaper.

A savvy, wealthy man would already have worked this all out...

This is one of those threads where I just hope it's not actually real.

He already owns a home. He can take a loan on that property.

or she needs get proper loans document signed by him & kept somewhere safe.

I dont necessarily think he's trying to con her but like you say life throws up curveballs and we aren't talking about a fiver here! She needs to seek legal advice and have a loan agreement drawn up and legally witnessed is the only way I could consider this. Money especially at this value should ALWAYS be treated as if you are dealing with a total stranger and love/trust/personal history shouldn't come into it

He has no intention of repaying the money so there are 250,000 financial advantages.

Agreed! I was referring to financial advantages IF he were genuine. Which I genuinely don't think he is.

No, definitely not!!

Not putting her on the deeds is a huge concern.

Your mother's partner is asking HER to take all the risk while HE takes no risk but gets all the benefit of this deal. That in itself is reason to distrust him, no matter how nice he seems and no matter how much he declares that of course he's trustworthy, would see she got back all her money, etc. etc. etc.

He may have had some idea it was a possibility before she knew about it?
What with him being so savvy and careful about protecting his interests.

That's a hard no.

Yes exactly, about the risk imbalance. That in itself is a sign that this situation is not ok for you mum to get into, and perhaps also that he is not to be trusted.

Just saying … years ago, my grandparent had a “business loan” from a friend, a large chunk to start a business (which became very successful. )

This friend died unexpectedly about a 2 yrs after loan was agreed. My grandparent brought by cash to make the first repayment and realised the friend had not told family, no records. It was awkward because it looked like GP was making a sympathy donation, coming around with an envelope of cash as the surviving partner didn’t understand at all about a loan and insisted that life insurance payout had them sorted. There was awkwardness about the money.

Grandparent kept the envelope & never paid it back. Decided that dead friend maybe considered it a gift … or something like good karma.

Get it documented in case you die.

This sounds like a romance scam tbh OP

I guess it's too late for her to say, 'oops I forgot the money is all in fixed ISA accounts and I cant afford to loose the interest and the tax free status'?
That's what I'd say if my HUSBAND wanted my life savings, let alone someone who had gone to some lengths to make sure I couldnt touch any of his money or assets!

Absolutely not!!

But how about they buy the house and it is put solely in her name for the time being until everything is sorted out. Suggest that and if he says no, that will tell your mum all she needs to know.