• Deed Of Trust

    By Guest on 03rd Jul 2016

    I am assisting my parents to buy a new house and I am contributing £15,000 which is 6.5% of the house purchase price and this will not be repaid until both parents are deceased. I want to ensure my investment is protected and I will receive 6.5% of the future house value once both parents have died and that my contribution will not be at risk of going to the government in the event a parent need to be in a care home in the future. How do I protect my financial interest in the property?

  • 2 Answers

    By Guest on 03/07/2016

    The safest option would to register a charge against the property. You will need instruct a solicitor to draft the deed (your parents' solicitors can't act for you). If they are getting a mortgage their lender will have to consent. Whatever option you choose, if your parents have a mortgage and default then your interest will rank behind the mortgage so if the lender sells the property and there is not enough left after the mortgage is paid and costs ar deducted to repay you you will lose out

  • By Guest on 03/07/2016

    Thank you. To update you there is no mortgage for the new purchase. Would a deed of trust resolve the situation? How can this work?

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