Making a will with a loan attached to it

[janner66]

Me and my partner are trying to buy our first house together but like a lot of people we don't have any savings for a deposit. My partner is medically retired from work and has no income. We are being evicted from our rental property as the landlord wants to sell. I spoke to my parents and they have been generous enough to offer me my inheritance early as a deposit. They have said they would gift me £20000 of it and loan me £30000 if the loan could be protected against the property in case of death. We don't want to add this stipulation onto the mortgage as we think this would effect our chances of getting a mortgage. Is there any way this could be entered into a will which would stipulate that in the event of my death that the loan would be protected against the house when sold? Is this possible and would the mortgage company need to be told of this debt? The debt would be classed as a lower priority than the mortgage and paid off when affordable.

Thanks.

[stevemLS]

Re: Making a will with a loan attached to it

As far as I know mortgage companies now want to know where the deposit has come from, and ask for evidence.

I can't see how a Will would offer any protection given that it can be revoked at any time.

I think you would be far better executing a formal Deed detailing the loan and the repayment terms and what happens on death. For this sum it is probably worth spending a few hundred £ getting a solicitor to draw it up for you.