Buying A House, Cash Buyer

I am planning on buying a house as a cash buyer. The house is £60,000.

The house will be in my name but some of the money will come from my girl friends account and my fathers account, me £15,000, girl friend £40,000 farther £5000.

All money is being gifted to me and will not have to be paid back.

Will I encounter any problems ?

2 Answers

Your conveyancer should ask for ID for your father and girlfriend and evidence as to how they have acquired the money as well as writing to them to explain they will not have an interest in the property and should get legal advice before proceeding but beyond that no, there shouldn't be a problem.

You must take advice on what you are doing which is creating a "constructive trust" and get an express trust agreement in place.. If the property is to be in your name, then you will be essentially holding the property in trust for your girlfriend, and by receiving a contribution towards the purchase, she will automatically have a constructive trust, or propitiatory estoppel case in the future. So the agreement needs to clearly show who is putting what amounts toward the purchase, what that represents in terms of % of ownership, and how you hold the property in trust for each other. Clear indications/agreements should be made as to what would happen in the event that you split up. Also a will is important, so that each of your wishes with regards to your contribution to the house (which would form part of your estate) are dealt with in the event of your death. Couples rush into the excitement of buying a property without clearly thinking what will happen if they split up, who will get what, what will happen to the property, who can remain in it if you split up and what happens if you can't agree. Also without a will, either partners share in the event of death will become their estate, and you may find that the beneficiaries of that estate, are not as inclined towards the remaining party, and may want access to their inheritance. You may fall out with your partners parents, siblings (beneficaries) who might not be open to you continuing to benefit from something that has become now there's. So a will is vital on both parts as to your wishes, and who will inherit their shares in the house. Furthermore I would suggest getting life insurance to cover the outstanding mortgage, and detail again who is to benefit from that in the event of death. This comes from personal experience, of the last 1.8years fighting a constructive trust case that has cost me £20,0000 with a potential end bill of £40,000 from someone who lied and said I had said the house was half there's when that was never the case. All someone has to do is state such a fact,without a shred of paper evidence and put a restriction at land registry by outright lying, give the wrong address for service to me, so the warning was delivered to the house that I was no longer living in, I knew nothing about it, and now almost 2 years later, having spent all my savings, they are fighting me for half of the house that I paid all the mortgage on, and the deposit. If you love each other, now is the time to make sure neither of you suffer something like that, but putting your understanding in writing now.