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Legal matters

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Original poster

Married but uneven deposits towards house

34 replies

Monkey250 · 13/04/2023 15:35

My DH and I have been married for three years. When we were in the early stages of dating his parents bought him a house in cash (c.£250k). The condition was that he paid them back £400 a month but there was no formal paperwork (and it was more the principal than them actually needing the money). I lived with him for four years in this house and contributed to bills (paying directly to him) in that time and saved a good amount of money.

We are now married and he sold this house and now has the proceeds from it to put towards a new house with me paying c.£100k towards the deposit. We will be buying together (both on deeds/mortgage) and getting a mortgage. He (technically we as our money is joint) will continue to pay his parents back monthly alongside a mortgage but again, there is no legal paperwork.

I am just confused on where we stand on ownership of the house and if there is anything I should be aware of with him bringing much much to the table financially. If we split, presumably I wouldn’t be entitled to half of the house as there is a loan involved? We will probably have children if we can. Is there anything I need to consider with a loan being involved in this way?

I should add that I love him a lot and don’t intend to split at all but also want to be assured that I have considered any implications of buying together in this situation. Any advice appreciated.

OP posts:

Croissantsandpistachio · 15/04/2023 07:16

We have a deed of trust on our house which sets out the proportions we own it in (DP brought the deposit, I pay more of the mortgage as a higher earner) but we're not married so it's different. I think you need to see a solicitor.

tiggergoesbounce · 15/04/2023 08:03

Is he declaring it as a debt on any formal paperwork with a mortgage application?

The courts would surely see it as a loan as there is a proven intent to repay with the £400 a month. The parents would have to declare the debt repaid for it not to be taken into account which i am sure they would be reluctant to do in the case of your divorce, as they would then see their DS loose a portion of whats remaining on the £250k.

I would have a chat with your DH, he needs to establish an end date to the loan (50+ years away). Or better still pay back the parents out of the equity on your DHs first house, and start together again, and an additional 400 a month would increase your lending power on an affordability check.

Definately get it sorted before proceeding.

Oblomov23 · 15/04/2023 08:35

Hang on a sec, you've already been married for 3 years. And you said his parents bought the house in the early stages of dating. How many years, exactly? 4 or more? Because yes he's contributed more, but if you've been saving for all these years, then in theory you too have already contributed largely to the deposit. 7 years? You too have been saving.

Broderieanglais · 15/04/2023 08:47

Talk frankly with your husband and his parents re the loan. If you are a decent person you would be saying something along the lines of

I know you contributed 250k towards DH house. I would not want to be entitled to more than my fair share in the unwanted event of any split. How would you Like to go forward. I'm willing to sign any paperwork so your contribution is ringfenced in the event of a split.

It is their choice then to decide.

Meanwhile you look like the fair and readonable DIL that you are.

ArcticSkewer · 15/04/2023 08:49

Oblomov23 · 15/04/2023 08:35

Yes, it looks like she put in £100k to new house, he put in £250k from parents plus his profit from house and equity he built up, plus he has savings of his own. Op, did he personally put in more or less than your £100k from his own money? I assumed more but was it less? In which case I can see you might be sensitive.

It doesn't really matter in another sense. They are married. It's pretty much joint equity - add it all up, take off the £250k debt (maybe it's £230k now) and that's their joint savings, which they would split on divorce. I can't see how she is disadvantaged really, except perhaps it feels 'endebted' to parents in law. They don't have to be - they could downsize and pay them back, then start afresh.

aibuaibuaibu · 15/04/2023 13:01

ClaudiaCustard · 13/04/2023 16:55

I think I'd actually approach them first. Doesn't have to be confrontational but now he's married, considering a family etc etc - of course he (and you) needs to know when this arbitrary £400 repayment might come to an end

And once you have an answer to that question, it's one less thing off the 'to do' list

I lent my DD 100K so she could buy a property aged 23. She got a mortgage for the rest. I was clear in when I would take my 100K back and there's no never ending repayment schedule. So definitely talk to them as a first port of call

She told her mortgage company it was a loan? Didn't you sign paperwork to say it's not a loan with the mortgage company?

potatowhale · 15/04/2023 13:06

Legally there is no loan

potatowhale · 15/04/2023 13:06

aibuaibuaibu · 15/04/2023 13:01

She told her mortgage company it was a loan? Didn't you sign paperwork to say it's not a loan with the mortgage company?

Show quote history

Yes you normally have to Do this

SheilaFentiman · 15/04/2023 13:15

Your lender may want to see your bank statements and they will see the £400 pcm going out. This will be taken into account in an affordability assessment.

I agree it would be cleaner to settle with the parents from the house proceeds, or possibly DH has a discussion about them gifting, say, half the balance (as part of IHT planning)

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