I want to help DS buy a flat, would this work?

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He wants to move in with GF. I have some money that was always earmarked to help DC with a first property purchase.

He's looking to buy with GF, who is perfectly nice and they seem good together, but I'm not sure I'm ready to give my money to her.

So, I was thinking, we own the property between the three of us. I pay 1/3 as a deposit and they're responsible for the mortgage. If/when the property is sold, the proceeds are split 3 ways, so if they do split up, I get the deposit back, which DS could use to buy something else.

Ultimately my plan would be to give them my share, but I'd like to see the relationship blossom for a while first.

This might also make it easier for them to get the mortgage, as my income could be considered.

If it makes a difference, I don't have a mortgage of my own.

Would that work?

Look up a declaration of trust.

Seems a bit stringent - will you also want input on the house they buy, pay towards any repair work / replacement of a roof, input on decorating etc?

I wouldn't want to buy with my partner with their mum wanting 1/3 share of my home even if finances are easier. What if your situation changed and you wanted the money back?

The alternative is to gift the money to your son and they buy the house as tenants in common, protecting the sum you give him.

Think about how you own your share and buy as tenants in common if you want to be a co-owner. If this is your 2nd property and you already own your current home I think you may have more stamp duty to pay. I think you may also be liable to CGT on disposal as it isn't your place of residence. If the property is sold to an unconnected person that would be fairly straightforward to work out your gain, but if you effectively dispose of it to your son then you would have to establish market value. Probably best to seek independent professional advice to be honest.

They buy as Tenants In Common (which they should do anyway ) and your Ds has a Deed that says what % of the property he owns.

Yes, good point about the maintenance, thank you.

I was only seeing it as a short term thing while we make sure they can actually live together successfully.

You say you don’t have a mortgage, but do you own a property? If so I think that as a co-owner the purchase would be subject to the higher rate stamp duty, and when you sell, as it is not your principle residence, your share would incur Capital Gains.

A Deed stating his ownership of his share is simple and easy to draw up and protects for him the contribution you make

We gave our son a small deposit. We had to sign something to say it was a gift. Can’t remember the reason now, but it’s worth checking out( it was a gift, we gave no claim on the property).

I would want to do so one thing similar to you in your situation.

Had you already promised your DS the money, and does he know how much it is?

Do he and his girlfriend have any deposit, and are they likely to be able to get a mortgage/buy a property anyway? Would they be putting equal amounts in, based on earnings at the moment? Or would he absolutely need your help to buy? Does he need all of it? If he's not totally reliant on that money to buy now, could you use it to help later? (for example if they need to do work on the property in the future, have a child, move to a different property).

Gift him the cash and get a legal agreement that ring fences the money in case of a relationship breakdown.

Buying a house is very costly, not a short term thing! Can't they rent together first?

Well I'm hoping that after the "short term" I'll just give it to them.

Yes, renting is probably the sensible thing, but it's so expensive with nothing to show for it.

I would go to a solicitor and get something drawn up to say whatever the percentage is of the house that you are giving he will get that back for himself and she would sign it. For example if you gave 10 percent of purchase price then he would get 10 percent of equity back plus half of whatever they own together.

But it’s madness to buy a property together when you’ve never lived together. The cost of the rent is a small price to pay in order to avoid a costly and long-lasting mistake.

No way I’d agree to this if I was your son’s partner. No way I’d want this arrangement if I was your DS actually!

As others have said, you can gift the money to your son and he and his partner can legally protect what they’ve each put in. Unless you’re also wanting to retain control of the money from your son, that’s the most straightforward way to do it.

I was only seeing it as a short term thing while we make sure they can actually live together successfully.

Have they lived together before because this sounds like a potentially expensive trial run!

When (if) the time comes we intend to gift DD some money towards a house deposit. If she's buying with boyfriend then I'd ask they get a legally binding agreement drawn up to protect her %.

And if they marry I'd accept my money is a gift to them both.

You need to put a charge on the house so that if it's sold you get your money returned. It's a way of safeguarding your money should they split. I wouldn't be buying be property with them. Get legal advice.

Yes, I think that's the answer really.

It's come about because I really want to downsize, which means he needs to move out! So I feel a bit responsible for helping him find somewhere to live.

I don't like the idea of paying rent. DH and I moved into our first shared home (owned) the day after our wedding, which was the way the vast majority did it back then.

But here is an exact circumstance where renting makes more sense - flexibility. It will be far more expensive if they buy and then discover they can't live together. They will have lost their first time buyer advantages on a property they might only own for a year. Far better to rent and test the water first.

Higher rate stamp duty if you own.

Capital gains tax for you when you sell because not you property.

Gift it to him and ensure he holds as a Tenant in Common with a trust deed drawn indicating share of property, or ring fencing deposit but also dealing with how shares are dealt with going forward to - after legal advice.

I don't like the idea of paying rent

thats ok, no one is asking you to!

If your DS and his girlfriend don’t mind, let them crack on.

If I was the girlfriend, as others have said, I would not be paying for 50% of the maintainance for a property I only owned 33% of.

I am planning on doing the same as you with my DS but he already lives with his g/f so watching with interest!

I think that's a fair point, but what about if that was the only way you could get on the ladder, like other shared ownership schemes?

Regarding renting, take a good long look at the respective cost of buying vs renting an equivalent property.

www.investopedia.com/terms/p/price-to-rent-ratio.asp

Its good you can help them op

How old are you OP? Because a mortage will be based on your earnings and age?