Setting up a pre house buying contract - what sort of Legal advise do we need ?

[KatyMac]

2 young people
One is buying the house outright, the other living in it

We need to protect the capital so if the other moves out it's not shared out

What sort of contract/agreement is needed

No contract or agreement is needed. Simply living in a house does not give you a claim to some of the capital. Just make sure they don't pay off any of the capital on the mortgage or contribute to improving the property.

Ensure that only the person buying the house's name is on the deeds. No shared/joint ownership.
As PP said, just living in a house does not give the right to a share of the capital.
Is the other person going to pay rent , if so get a rental contract. I agree that they should not contribute to improvements , it might be a good idea to make sure there is note of who has bought any items of furniture.

I dont want to be mean but I need to protect the money

Thanks

Lodger agreement?

Just living there gives you no claim to the capital.

If they marry or enter a civil partnership,there may need to be some sort of pre-nup but these are not enforcable in the UK

Possibly a deed of trust? You really need to speak to your solicitor.

Are you in a relationship? Or are you friends? Go and talk to a solicitor if you’re concerned

Are you lending / giving the money to your DD / DS to buy a property ? And who is the other young person - their flatmate or a partner ? Married or unmarried ?

If you are giving them the money then you can take out a charge over the property and set it up as a loan. You can’t do this if there is also a mortgage.

A solicitor will be able to arrange this for you. And your DS/DD should also make a will at the same time.

I’m making assumptions here as you have been so vague OP.

Are you buying your child a property outright and is your child's girlfriend / boyfriend moving in?

DD is buying a property with her inheritance from my mum

Her boyfriend is moving in

It will be in her name solely

Wills are a good idea - they have mentioned them

Can a document be drawn up where he acknowledges that he has no financial interest in the property?
If he lives there rent free, the he should be in a position to save for his own place later on, maybe a Buy to Let.

@RainingYetAgain

If they marry or enter a civil partnership,there may need to be some sort of pre-nup but these are not enforcable in the UK

Family solicitor here. They are enforceable.

Pre nups are enforceable but they are not getting married so irrelevant.

You could have an agreement that he has no beneficial interest in the house.
Don't let him do any work on the house.

Deed of Trust. See your solicitor

Ok so you can’t take out a charge on it as it’s Dds money and not yours . Scrap what I said.

A lodger agreement usually applied when someone rents their own room, and I assume that he’s sharing a room with DD. So don’t know if that would work - see what your solicitor says.

Yes of course he should pay rent and share bills like any other flatmate. But not pay towards any repairs or improvements.

Is your DD buying in Scotland @KatyMac?

@Mosaic123

Deed of Trust. See your solicitor

No deed of trust needed as it will be in daughter's sole name.

Cohabitation contract is belt and braces.

Not Scotland, no

Thanks everyone xx

Just checking. Often posters don’t mention where they live and just assume that any legal advice will be relevant to any country in the world!

I think you are very wise to insist on the the belt and braces . MN is full of women who lost their family inheritance to some short term BF/ partner / husband because of lurve.

My kids are still at school / uni and they already know that any future spouse will have to sign a pre nup, as they own shares in a family business. I have several belts and braces .

I agree but I think at some point in the future we need to include him in the sale if they split

Maybe a small percentage of the increased valve

So many women live in their partners house and they split and they get nothing even after years and years

It needs to be equitable

Interesting comments about pre nups.
We are giving DS cash for a house deposit took advice on him being able to ensure that he would be able to protect it if he were to marry. Solicitor said Pre nup cannot be enforced in the UK. Interestingly they have sent out one of their periodic newsletters where this is mentioned. Although they go on to say, that if they meet certain criteria they should be a factor when dividing assets .

@KatyMac

I agree but I think at some point in the future we need to include him in the sale if they split

Maybe a small percentage of the increased valve

So many women live in their partners house and they split and they get nothing even after years and years

It needs to be equitable

YY. But many of these women have given up their work / gone part time / taken maternity leave to care for joint children. And taken on most of the domestic labour as well.

I don’t know many men who have done this for their female partners. Mind you I only know a few SAHD and I notice 6 things about them that are very different from SAHM.

1. They didn’t become SAHP until their children were nursery / school age - their wives did the full time care of babies / tiny children first.
2. They are all legally married.
3. They all get a full day off at the weekend.
4. Everyone says how amazing they are and how lucky their wives are.
5. They see their job as being childcare and not housework - their wives still share this at weekends / evenings.
6. They never say “ Oh my wife is entitled to time off at the weekend as she works hard all week “ or “ I feel guilty about spending my wife’s money as I don’t contribute “.

Of course I’m sure all these difference are pure coincidence / completely due to the individual and nothing to do with sex.

My Dd also owns her flat and has two flatmates. They get pay rent and a share of bills and get accommodation . I don’t think she plans to give them a share of the increased value when they move out. But I guess she’s not in a sexual relationship with them, so she doesn’t feel that she owes them.

Or course , if she marries / civil partnerships with one of them then they WILL be entitled to half the the capital gain for the duration of their marriage.

@RainingYetAgain

Interesting comments about pre nups. We are giving DS cash for a house deposit took advice on him being able to ensure that he would be able to protect it if he were to marry. Solicitor said Pre nup cannot be enforced in the UK. Interestingly they have sent out one of their periodic newsletters where this is mentioned. Although they go on to say, that if they meet certain criteria they should be a factor when dividing assets .

I think your solicitor is misinformed - pre nups are legally binding in Scotland, which was in the Uk last time I checked .

Her boyfriend will be benefitting by not paying rent, and do building up his own savings.