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Something of a chicken and egg scenario here!
Party A owns a house worth circa £400k. Has no regular income.
Party B has a charge on A's house to the value of approximately £190k. This charge related to an investment in C's business.
Party C has a regular income, sufficient to cover the repayments on a loan/mortgage taken on A's house.
All parties are agreed that it makes sense to look at a way of (C or A or A together with C) using A's house as a means of borrowing £190k in order to pay off the outstanding amount which relates to the charge, thereby meaning that B receives a lump sum, and A and C no longer have the charge hanging over them.
This seems relatively straightforward, yet when B insists that there is a robust legal agreement to ensure that their funds are guaranteed throughout, it becomes a little confusing for me. What is the best way of conducting this deal, if it can be done? Any ideas of the best course of action? Suggestions regarding the legal mechanics and also any advice on the best providers for such loans would be much appreciated.
Should there be a feasible way of doing this, A/C will be in the market for someone to process the legal side of things for them.
Thanks in advance!
Party A owns a house worth circa £400k. Has no regular income.
Party B has a charge on A's house to the value of approximately £190k. This charge related to an investment in C's business.
Party C has a regular income, sufficient to cover the repayments on a loan/mortgage taken on A's house.
All parties are agreed that it makes sense to look at a way of (C or A or A together with C) using A's house as a means of borrowing £190k in order to pay off the outstanding amount which relates to the charge, thereby meaning that B receives a lump sum, and A and C no longer have the charge hanging over them.
This seems relatively straightforward, yet when B insists that there is a robust legal agreement to ensure that their funds are guaranteed throughout, it becomes a little confusing for me. What is the best way of conducting this deal, if it can be done? Any ideas of the best course of action? Suggestions regarding the legal mechanics and also any advice on the best providers for such loans would be much appreciated.
Should there be a feasible way of doing this, A/C will be in the market for someone to process the legal side of things for them.
Thanks in advance!
