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?

No way!

And yet another NO vote from me! I hope you're going to show your DM the results of this OP.

She could ask the solicitor to set it up as a formal secured loan. Trouble is that I suspect it needs to be a “gift” if it intended to be a deposit so he can get a mortgage for the rest. In which case absolutely not, they just need to buy as tenants in common instead.

He wants her to take all the finacial risk (and actual loss - interest on her savings etc.) for none of the financial benefit?

And to keep their finances completely separate unless and until it benefits him?

Rather than use one of the potentially cheaper and more sensible options pointed out by posters on this thread?

At best he is not very bright and a cheeky fucker. There are also worse possible explanations.

Hard no.

Only if i was a proper loan agreement. I wouldn’t loan any money without an agreement and back up plan. My good friend told me a few years ago she was going buy a campervan when she got her pension 25% pay out at 55, but as it was March then and she wouldn’t get the money until December I decided to offer to loan her 12k to get it early. We drafted a proper loan agreement but I also said we needed a plan incase she got hit by a bus, as I didn’t fancy my chances of getting any money from her daughters. So friend signed her pension to me with a letter to state I was to take 12k from it plus 1k interest she insisted on paying, and share remainder between her 2 daughters.

I had never loaned anyone money of that amount before, but I am glad I did as in January this year she was diagnosed with cancer and died 9wks later, age 57. I was so happy that the loan enabled her to have 3 summers with her camper van instead of 2.

Aside from this horrendous possibility, has she thought about what living in this house is going to look like? Any money she spends on the house she won’t get back. She will have no legal right to any equity in the property nor will she be able to get money from him.

eg she pays £50k for a new kitchen on the premise that she’s gets it back if he dies. He does die but hasn’t specified that she gets her £50k from the sale proceeds. the executor decides they’re not going to give your mum her money back nor anything else from the estate and it’s all going to his children with a few thousand being bunged to your brother.

OR

She buys the new kitchen, they split up, she says goodbye to her £50k.

If she’s not contributing to improvements on the house, will she have a say if it’s “his” house? Will she feel at home or like she’s a guest? Has she thought about any of that?

Hmm I would be hugely concerned about this OP🚩
It would certainly be a no from me.

Dear God No
6 years or 60 years - you don't 'lend' someone £250K without a lot of legal protection and even then it would be a NO from me. She may need her money at short notice and if it's locked up in a house, at best there'll be a substantial delay in getting it back.

If she wants to be kind - she goes in as a financial partner with contracts and such but it will still cost her to get the money back. She is much much better off keeping her money separate permanently. He wants to keep his adult children's inheritance protected and so should she.

It’s got scam written all over it. Absolutely no way should she do this!

He might not even have money if she hasn’t see his will, doesn’t share fiancials etc.

The buyer could have been a mate, could have been a plan. Sounds crazy but it does happen.

But he isn’t looking after your brother.

If they’ve been together 6 years, then your DB is very young?

but if her DP drops dead tomorrow, your mum and brother’s home is split 3 or 4 ways.

she needs to have lifelong tenancy, or at least until your brother is 18.

She can get a loan agreement drawn up and then put a charge on the property until it's paid back.

I did this when I loaned my sibling some money to buy their house. They couldn't get a mortgage for various complicated reasons and were a bit short. The solicitor drew up a straightforward loan agreement which was properly witness etc and rhen you put a charge on the property so if something happened eg he died, the loan would need to be paid back from the proceeds of the property

Well, as people pointed out about the will being changeable, I text her earlier and they also had a loan agreement that she was always to be paid the money when the house was sold. But the will was updated as well.

Was lucky she did both as his kids who she had a great relationship with for years suddenly resented having to sell their family home and contested.

I hope she laughed and asked if he was joking!

Absolutely no way. Either he gets a loan from a bank of building society or he waits until he can afford it without a loan. Your DM would be a fool to lend to him, even if he is honest and intends to repay what would happen if he died?

If I'm giving MY savings, it'll be MY name ONLY on the deeds.

Don't do it! My elderly Dad make this mistake...had a g/f both had their own places (owned) wanted to sell & buy together...Dads sold 1st so he bought another place put g/fs name on the deeds (she didn't put a penny in) relationship then broke down and she absolutely took half the proceeds....

Absolutely no way.

It’s too complicated for him to marry her? Well, it’s too complicated for her to lend him money then.

Show her the thread, she would be bloody mental to do this. She doesn’t need legal advice she just doesn’t do it.

This. OP, please don't let her give her life savings away.

So, he and his children get loads of security and asset protection but your mum doesn't?

Nope. I’m a solicitor and see people getting stung all the time in situations like this

ABSOLUTELY NOT.

This is a scary situation for your mum. Has she got her savings invested in something with a good yield? She would be losing out on any interest and who knows if he will suddenly turn around and say he now wants rent instead of paying it all back. Or he borrows money and gets hit by a bus before he pays it back.

Has your mother thought much about what will happen if in 10/20 years her partner dies first and his kids take the house she has been living in - property prices will likely have risen a lot in that time and unless she has made some very shrewd investments she may find that she can not afford somewhere to live. I would suggest that she uses that money and gets a small mortgage to buy a place that she rents out to have as a house for herself if anything should happen to her partner. The rent could pay the mortgage and the property would be there if she needs it.

Trust goes both ways- the only way to protect her money is for her to have a ringfenced share of his house reflecting her financial contribution. A solicitor for each of them. Then when he's in the position to pay her back they can change the deeds in exchange for the cash. If he doesn't like that then it's not something she should do.

Yes and he should pay for both solicitors.

He is socializing the risk and privatizing the reward. I am aghast that your mother and his last childcare treated like some kind of appendix to his real family. His older children were funded by him, and presumably their mother treated like a wife prior to the divorce or her death. But your mother—after six years and a child—is still treated like a probationer?

What contempt he has for her! And for his last childcare treated. Absolutely no thought to securing that child’s rights and future. Which we all know OP’s mother will be solely responsible for if the “partner” should choose to end the relationship.