Securing A Loan On Property

[Scouser]

Hi

A family member wants to buy a new home. Rather than go down the mortgage route I am looking to loan them (Interest free) the money to make the purchase.

I want to secure this loan however and was thinking of the following.

1. Have an agreement written to secure the money. I guess this should include
Amount loaned
Time and schedule of re payments
What happens in even of non payment
What happend for repossession


2. Register a charge for the full amount with land registry

I would also like to add a clause that allows me to force a sale of the property (In the event they don't agree to sell if in financial difficulty)

I have never done this before and would like to cover all bases.

Happy for suggestions and what my best steps would be

Thanks

[atticus]

1. Loan Agreement.

2. Charge deed securing the loan on the property.

3. Register the charge at Land Registry.

A solicitor should be able to help you with this.

[Crazy council]

We have done similar within our family's, and it worked out well

I would just advise to detail the break periods, amounts of arrears when action will be taken automatically ( 3 months ) and actions ( property will be sold ) very clearly, so they know you will have to take action just like the bank would.

Also, consider there marital status, and protect yourself within the terms if possible ( just in case there curcs change, lol, this was one of the terms set against me so i didnt loose it to anyone )

detailing the terms of breaching the contract nice and clearly at the start both keeps pressure on them as family members, and makes it less awkward if there circumstances change , .

[Scouser]

Great tips from botrh Crazy council and atticus Thanks