Posted on 11 May 2013 by David
I helped my son and fiancee with a deposit towards buying a house, and now they are splitting up can I claim it back?
Regrettably unless you had an interest registered on the property, or your son owned the property as "tenants in common" with a defined split to rotect the money, then I'm afraid it's highly unlikely you will be able to claim any of your money back.
It's a common problem, that is cropping up more regularly as the "Bank Of Mum & Dad" has become an ever more popular source of deposit funds for first time buyers. There is a natural reluctance when buying together for the first time for borrowers to even consider that it won't last forever, and to take legal advice to protect the amount of equity each party is putting into the property. However it is nothing more than a sensible precaution, as an out and out gifted deposit, and then buying the property as "joint tenants" means each party will usually get 50% of the equity on the sale.
There are also a number of "Family Guarantor" schemes available where parents can use their savings towards the child's property but still retain control of the funds.
I think that in this case, unless there was anything agreed when you provided your son and his fiancee with the money for the deposit, then there's nothing you can do.
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