Reply to: 'Bank of mum and dad' lends £5bn a year in UK, says L&G

[LondonManc]

Interesting article in Mortgage Strategy:

The legal pitfall for the Bank of Mum and Dad

Parents that want to help their children jointly buy a house should also prepare legally for their offspring splitting up, according to property lawyers Goldsmith Williams.

The law firm says that parents should set up a declaration of trust if their child buys a home jointly with another.

Goldsmith Williams senior partner Eddie Goldsmith says: “We know from dealing with so many cases involving mums and dads that lenders are not happy for any advance to be repayable.

“Whilst mum and dad are gifting this money to their offspring and therefore are not expecting this to be repayable to them in the event of a sale, nevertheless they will be uncomfortable in the partner of their offspring receiving an unexpected and undeserved windfall in the event of a split.”

Goldsmith says that a declaration of trust will ensure any such payment goes back to their child after the mortgage is paid.

He says: “Mum and dad won’t get their money back – it was a gift, so they shouldn’t be expecting it, but at least they can take comfort that whatever they gave will go back to their son and daughter rather than be split with the joint owner who did not contribute to the generous gift.”

Reads like there's some brother-sister loving going on

[unemployed]

Interesting article in Mortgage Strategy:

The legal pitfall for the Bank of Mum and Dad

Parents that want to help their children jointly buy a house should also prepare legally for their offspring splitting up, according to property lawyers Goldsmith Williams.

The law firm says that parents should set up a declaration of trust if their child buys a home jointly with another.

Goldsmith Williams senior partner Eddie Goldsmith says: “We know from dealing with so many cases involving mums and dads that lenders are not happy for any advance to be repayable.

“Whilst mum and dad are gifting this money to their offspring and therefore are not expecting this to be repayable to them in the event of a sale, nevertheless they will be uncomfortable in the partner of their offspring receiving an unexpected and undeserved windfall in the event of a split.”

Goldsmith says that a declaration of trust will ensure any such payment goes back to their child after the mortgage is paid.

He says: “Mum and dad won’t get their money back – it was a gift, so they shouldn’t be expecting it, but at least they can take comfort that whatever they gave will go back to their son and daughter rather than be split with the joint owner who did not contribute to the generous gift.”

indeed what happens when mum and dad gift 100k so son can buy house with new girlfriend ? son and girlfriend buys house , son dies suddenly girlfriend fecks off with 100k free legally .

[Martin@AS Financial]

Interesting article in Mortgage Strategy:

The legal pitfall for the Bank of Mum and Dad

Parents that want to help their children jointly buy a house should also prepare legally for their offspring splitting up, according to property lawyers Goldsmith Williams.

The law firm says that parents should set up a declaration of trust if their child buys a home jointly with another.

Goldsmith Williams senior partner Eddie Goldsmith says: “We know from dealing with so many cases involving mums and dads that lenders are not happy for any advance to be repayable.

“Whilst mum and dad are gifting this money to their offspring and therefore are not expecting this to be repayable to them in the event of a sale, nevertheless they will be uncomfortable in the partner of their offspring receiving an unexpected and undeserved windfall in the event of a split.”

Goldsmith says that a declaration of trust will ensure any such payment goes back to their child after the mortgage is paid.

He says: “Mum and dad won’t get their money back – it was a gift, so they shouldn’t be expecting it, but at least they can take comfort that whatever they gave will go back to their son and daughter rather than be split with the joint owner who did not contribute to the generous gift.”

[LondonManc]

Grammatically incorrect echo

FTFY

[WTFH]

Which is why millions is lost in possible taxes each day.

Thats the reason why millions is lost in possible taxes each day

Echo

[unemployed]

Both.

so a bloody estate agent



one of these will be in order soon

[MrMarkyMark]

do they let or just maintenance ?

Both.

[unemployed]

True, but they manage more than student digs. One of their competitors recently folded, so they now manage their client base too.

do they let or just maintenance ?

[MrMarkyMark]

plenty student / hotel buildings going up near me which are having an affect on old housing converted to student digs.

True, but they manage more than student digs. One of their competitors recently folded, so they now manage their client base too.

[bobspud]

What about insurance? Surely that's sky high.

Specialist insurance and a black box would be my guess. You always hear scare stories about first year costs more than the cars worth but I see plenty of kids driving nice cars down here so it can eb that bad.

[unemployed]

Fully managed lettings, university city also.
Anyway, has had to graft and put up with being really skint, but seems to be paying off.

plenty student / hotel buildings going up near me which are having an affect on old housing converted to student digs.

[NotAllThere]

Actually makes quite a lot of sense.

1) Its new so you know the car is mechanically sound.
2) Its a two seater so no chance of them turning into mr taxi. So no distractions while getting used to driving it
3) It will handle better than most tulipty little first cars so at least if the kid is a dick the car will help out a bit more than a 10 year old 106.
4) You can stick a black box in it that basically guarantees that they will behave themselves.
5) you can probably get it on a finance deal for less than £200 a month...

What about insurance? Surely that's sky high.

[MrMarkyMark]

estate agent fully managed lettings ??

Fully managed lettings, university city also.
Anyway, has had to graft and put up with being really skint, but seems to be paying off.

[unemployed]

Ones in property management

estate agent fully managed lettings ??

[bobspud]

I remember a guy who's parents bought him a brand new mx5 on his final year at uni. Who does that!?!

Actually makes quite a lot of sense.

1) Its new so you know the car is mechanically sound.
2) Its a two seater so no chance of them turning into mr taxi. So no distractions while getting used to driving it
3) It will handle better than most tulipty little first cars so at least if the kid is a dick the car will help out a bit more than a 10 year old 106.
4) You can stick a black box in it that basically guarantees that they will behave themselves.
5) you can probably get it on a finance deal for less than £200 a month.

When I was in Merc the other week some lucky girl was getting an SLK for her 21st... I think my mate was paying close to nothing for his.