Best way to give deposit to daughter for apartment purchase with boyfriend

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Privinv

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Hi,

I wish to give my daughter a deposit (maybe €60k) to buy an apartment with her boyfriend. Would appreciate advice on the best way to do this so that it is clear that she is providing the deposit, and that it would be returned to her should they split up and apartment is sold. Hopefully this would not happen but I feel it is wise to consider all possibilities.

Thanks
 
Put your own name on the title with the couple.

Otherwise in the event of a dispute the messiness of family law takes over.
 
cremeegg said:
Put your own name on the title with the couple.

Otherwise in the event of a dispute the messiness of family law takes over.
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You may need to be involved in the mortgage. I tried to do this and the bank wanted me to be an applicant on the mortgage.
 
Put your name on the title and try and get a house if possible, management fees are a drag on cashflow.
 
Have a legal document drawn up that should they split up, the daughter gets an additional 10% (or whatever) ownership of the property.
 
Privinv said:
Hi,

I wish to give my daughter a deposit (maybe €60k) to buy an apartment with her boyfriend. Would appreciate advice on the best way to do this so that it is clear that she is providing the deposit, and that it would be returned to her should they split up and apartment is sold. Hopefully this would not happen but I feel it is wise to consider all possibilities.

Thanks
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Let's say the apartment costs 120K. She is therefore putting in half, and she'd be entitled to half not 60K on sale. Let's say the mortgage is 60K and both of them pay that. It's a percentage that she should be getting. So if the house sold for say 180K she's entitled firstly to half of it, 90K, and out of the other 90K she's entitled to 45K meaning she gets 135K and her partner gets 45K - presuming house price increases and that the mortgage get paid off. And that they both equally contribute to the mortgage costs.
 
Hi, many thanks for replies, much appreciated. I don't think I wish to have my name on the title.

The legal agreement idea appeals to me. In the situation where for example she puts in €60k as deposit on a place costing €240k(he doesn't pay towards deposit) . Do I understand correctly that legal agreement would state she gets an extra 25% ie ownership of 75/25 split in favour of daughter, assuming rent etc equally shared?

Thanks
 
Firstly you need proper legal advice.

Just saying what you want doesn’t mean anything.

Anything in a legal agreement is unlikely to be enforceable in the event of an acrimonious end to a relationship.
 
If they are not married, Family home act doesn't apply.

Can you put a charge on the property for the E60k?
 
How solid is the relationship?

You could look at them purchasing the property with shareholdings to reflect their relative contributions.

Or lend the money to both so that he owes you €30k too; take security over the equity in the property after the mortgage has been drawn down?

If you have lots of assets, it might be better to lend the money anyway and write off €12k a year over five years to preserve her threshold anyway.
 
Thirsty said:
If they are not married, Family home act doesn't apply.
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This is the crux of the matter. And while Thirsty may be technically correct, the advice is misleading.

In the event of a relationship breakdown one party can claim a share of any joint assets, wether married or not. And can claim that the home was a joint asset irrespective of who put up the deposit. That is why putting the OPs name on the deeds should be considered, even though that may not be very nice.

It seems to me the OP has a choice, hand over the money and forget about it, let the relationship take its course, or put his own name on the deeds. That of course would have implications for the mortgage.
 
Very few banks will facilitate a parent appearing on the deeds or any tax planning angles...it tends to be the private banks and only where there is a strong relationship angle for the bank.
 
Gordon Gekko said:
How solid is the relationship?

You could look at them purchasing the property with shareholdings to reflect their relative contributions.

Or lend the money to both so that he owes you €30k too; take security over the equity in the property after the mortgage has been drawn down?

If you have lots of assets, it might be better to lend the money anyway and write off €12k a year over five years to preserve her threshold anyway.
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A declaration has to be signed that the money is a gift and not a loan.
 
SBarrett said:
A declaration has to be signed that the money is a gift and not a loan.
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Yes. However, I am aware of a number of cases where people are doing the following:

- Submitting the declaration to the bank

- Signing a separate document which states that the declaration dated X is nothing but a sham for the purposes of obtaining finance, merely a bank prerequisite, and that the money remains outstanding by way of loan.
 
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