• Helping A Friend With Buying A Property

    By Guest on 31st May 2015

    I have a legal task which I need someone to perform concerning the purchase of a flat. The property is being purchased by a close friend of mine for around £140,000. The bulk of the money for the purchase, around £110,000, is coming from her own resources, primarily from the proceeds of the sale of her existing flat. She is in her 70s and hence the £30,000 difference cannot come from more conventional sources, like a residential mortgage from a financial institution. I have agreed to provide the £30,000 shortfall but without giving her the money absolutely - she will merely have the use of the money for as long as she lives at the new flat. She has three sons who are equal beneficiaries under her current Will. It is not my intention to effectively gift her sons my £30,000 on her death, or when she ceases to live at the new flat but for the money to then return to me, or to my beneficiaries if I am dead at the time. I would add here, although it is probably not relevant, that I have no intention of ever living at the property or acquiring any other rights of this nature. My actions are purely those of a dear friend with no ulterior motive.

    There is the conundrum of how best to achieve this. I do not feel that her merely adding a clause in her Will, gifting me £30,000 would suffice, as the Will could clearly be changed, in a variety of circumstances, in the future. Some form of charge on the property springs to mind - like a mortgage, with a 0% interest rate and no capital repayment until it was redeemed perhaps, if such a vehicle could be structured.

    I should be pleased to hear anyone's thoughts here, both as to the above suggestion and any alternatives that there may be to achieve the required end. Also, where might I best go to obtain professional help here, as the drafting of the appropriate documentation, whatever it was, would be beyond me personally, even though I have some knowledge of the conveyancing process and, indeed, have done several registered land transfers without professional help.

  • 2 Answers

    By Guest on 05/06/2015


    Registering a legal charge is probably the best option. Your friend could also hold the property on trust for herself and you on terms that on sale you receive £30,000. A trust deed is simpler but a legal charge gives you greater security. You could also be a joint legal owner (again, a trust would be required. Speak to a conveyancing solicitor (high street, not one of the large volume firms). The fees shouldn't be to high

  • By Guest on 06/06/2015

    Thank you

  • Post Your Answer

  • Do you want to be informed of further comments / replies? Yes No

Ask a Question