moving house help!!!?

Question

hi all, me and my partner are first time buyers and should be moving in our new house in a few weeks anyway, my partners mum is lending us the 5 percent deposit, which is really good of her. the problem is, is that she says she wants a claw writing up by a solicitor to say if we sell the house or spilt up she will get her money back, which is fine but im sure she is goin to expect intrest on this 5 percent deposit, either that or she wants to own 5 percent of our home, which i dont really like the idea of, does anyone know what a claw is and how we would stand about paying this money back when the time comes eg:is she entitled to intrest or to a share of our home. hope this all makes sence.
becky xx

Answer 1

Have a clause drawn up - but you can also state if interest will be payable on the deposit. This is a personal agreement between you and her so the matter of ownership of the property should be included as well.

Dont worry just talk to her and make sure it is all included in the clause.

Answer 2

It is actually called a "clause". I would not allow her to own 5% of your home. If anything, I would write up a promissory note for the amount you are borrowing. Pay her back as fast as you can. Since she is family, she should not charge interest (if she does, it doesn't say anything about her character) The note should include the names of the borrowers, the lender, the amount, the date it was given, the date it is due and payable, and what the monthly obligation will be. Have an attorney look the note over to add any necessary legal jargon and then have it notarized.
I would much rather pay back borrowed money than not own 100% of my house.

Answer 3

I think it's a clause as well.

Basically the clause should be explicit in what the terms of the return of the your mother-in-law's share would be.

I would suggest specifying a rate of interest (or not) depending on what she says she wants. This will "cost" less than having to pay her back 5% of the re-sale value of the house when you sell it.

Bear in mind that house values are growing by about 3-5 times 5% at the moment so in about 2/3 years you could pay her back by marginally re-mortgaging the house.

Good luck and it'll be worth even a small amount of interest to get yourselves on the housing ladder.

Answer 4

Becky,
Go to the real estate attorney who's drawing up the documents forming your real estate partnership. Have that attorney include the clause referencing this 5% contribution by your partner's mother.
My daughters are 7 and 4 years old. I will give them money to buy houses with their husbands. If they want to do investments with partners, then they know not to enter that arena without savings.

Girls who have sex with boys prior to marriage are ill advised.
Girls who move in with boyfriends are foolish.
Girls who buy houses with boyfriends are just stupid.

Lastly, you have a problem with your loan now. Lenders allow parents to "gift" down payment money to their kids. This must be accompanied by a "gift letter" - it states that the 5% is not a loan, but a gift that does not have to be paid back.......

Answer 5

she just wants clause in the contract saying she will get her money back when you guys sell. You don't have to give her interest if that is not in the contract. I'm sure she's a nice lady and wouldn't want any interest just her original loan. Any way good luck with your move On the Ladder

Answer 6

Tell her you are grateful she is willing to stump up the 5%, and that you want to pay her back ASAP.

5% of £150,000 is £7,500. You should be able to pay this back within 1 year.

If there's any reasonable chance of you and your partner splitting up, either do not buy a house with him, or make sure whatever legal agreements you enter into are nice and easy for you to get back out of.

Answer 7

just state in the clause the exact amount she is going to be paid with when you sell the house or when you break up.....just make sure the ownership of the house identifies you and your partner as the owners....be very sure it has your name on it....ask her if she wants interest on her money, if she does, and you're not really keen on that, then you might as well not accept her offer and find some way to get the money yourself......

Answer 8

my staggering advice for you may to do an same element i did after I moved a clean cat right into a clean abode i'd like to point that you commence by technique of having a clutter container for the contained in the abode in case you dont already have one and in case you do tremendous yet i'd ensure that for the first couple of days or perhaps the first week in case you needed shop the clutter container acceptable the position the cat can see it dont allow the cat flow outdoors except your acceptable there with it and after the first 2 or 3 days then i'd gradually allow her or him flow outdoors by technique of themselves yet by technique of that element they ought to already be so used to the hot position that they'll ignore all about the old position you used to stay no count how close you're on your old abode

Answer 9

jeez....... now that's a clause with claws !!! i hope u are 100% sure about moving in with this guy. if u have any doubts, then don't get yourself tied into all this ! i speak from experience... i moved into a house with a guy who i'd been dating for 5 years, and who i loved, but wasn't totally 100% sure about.... it ended up costing me a lot of my savings and a whole load of stress. i really hope u have more luck than i did !

Answer 10

I think what she means is she wants a "clause" written up to the purchase agreement stating her request. Hope that helps!!