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Charge on the house
where?what?how?
Posts: 50 Forumite
I want to buy a house from a friend for cash. We would like to arrange matters so that I pay slightly less than half (say 5/12ths), although the proportion is flexible.
When I sell the house in 3 or 4 years time he will receive the outstanding sum (say 7/12ths). The final sum would be adjusted up or down depending upon the final sale price. That is we will have the house valued before I buy it and agree the presumed value.
How can we secure my friend's equity? Should we have a charge placed on the house? Is there any other legal mechanism?
Thanks.
When I sell the house in 3 or 4 years time he will receive the outstanding sum (say 7/12ths). The final sum would be adjusted up or down depending upon the final sale price. That is we will have the house valued before I buy it and agree the presumed value.
How can we secure my friend's equity? Should we have a charge placed on the house? Is there any other legal mechanism?
Thanks.
0
Comments
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You really need to see a solicitor to discuss the options and potential complications.
A charge is one option, joint ownership another. A loan of a fixed amount repayable on [date], or on a variable date, or an interest in the value of the property ...
Not easy to get right, but important that you do. See a solicitor.0 -
Thank you for the suggestions. If anybody could give me more information about the implications and technicalities of a charge and payment on a variable date I would be pleased. Many thanks.0
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