Loan - securing parents' interests

[sun_sparks]

I'm looking for advice for myself and my boyfriend.

The boyf's parents are lending us (well actually him) money to use as a deposit to buy our house. To this end, they have completed a "gifting" letter, explaining that they have no interest in the house, etc. etc.

They have remortgaged to provide €50,000, and we have agreed to pay their additional monthly repayment with a view to remortgaging our new property in two years to pay back the balance.

I don't need advice on the financial side of this; we have thoroughly discussed all the implications. (Not all of this money is being used for the house - some if going toward buying a car, etc.)

Now, the question is this:

Given that myself and the boyf are not (yet) married, we would like to draw up a document protecting his parents and him in case the relationship ends for some reason. Obviously, I jointly owe the €50,000 plus interest, but how best would we draw up a document stating this and stating that, should the relationship end, his parents are paid back before the balance of the house is divided. Or should we leave the house out of it for tax reasons?

I'm also unsure as to whether to discuss this with a solicitor - does it have Revenue implications?

 

[RainyDay]

Given that they have just signed a letter to confirm they have no interest in the house, it makes little sense for you to now draw up a document to state that they HAVE an interest in the house (if the relationship were to end). You have to make your mind up!

 

[Ravima]

I think you should talk to your solicitor. the solicitor handling the purchase should be able to give some advice. It is always possibel to draw up a legal document for this particular reason. it could refer to the 'gift' and that in the event of the relationship ending pre marriage, that the 'gift' along with all other gifts would be returned. In my day at least, if the wedding did not go ahead, all giftw would be (redfaced and ashamedly) returned.

Sadly, it would be better to draw it up now whilst love is hot and alive as im my experience, if things go ary, where once there was some spark of love, there then commences pure and unimanined hatred!!

good luck on the forthcoming marriage and may it last forever!