Shared title deeds but with buy back option

nomadonkey

I'm buying property on a joint title deed.

I need to know if a contract can be drawn up where I can I can include a clause stipulating the right to buy his share back at purchase price.


Thanks

TonyMMM

You can put whatever you like in a contract - the issue is whether the other party agrees and is willing to accept it.

If you are buying a property you will have a solicitor acting for you - ask for their advice.

ValHaller

nomadonkey wrote: »

I'm buying property on a joint title deed.

I need to know if a contract can be drawn up where I can I can include a clause stipulating the right to buy his share back at purchase price.


Thanks

Why do you want to do this? What if he wants to buy back your share on the same terms?

InMyDreams

More background here: https://forums.moneysavingexpert.com/discussion/4686351

I still don't understand why you would want to legally bind a family member who is helping you out into such an unfair clause. Would your relation also be getting independent legal advice?

tim123456789

nomadonkey wrote: »

I'm buying property on a joint title deed.

I need to know if a contract can be drawn up where I can I can include a clause stipulating the right to buy his share back at purchase price.


Thanks

Only a real financial numpty would agree to such a condition

can you arrange for me to jointly buy a property with your friend, please

tim

nomadonkey

InMyDreams wrote: »

I still don't understand why you would want to legally bind a family member who is helping you out into such an unfair clause. Would your relation also be getting independent legal advice?

Its because its essentially a loan until I remortgage. I'll be paying them a favourable rate of interest.

Family member is temperamental, old and known to change their mind. They've insisted on title deeds inclusion as they 'don't trust the land registry'.

I'm grateful for their help, but I don't want to be in the situation when in six montsh I remortgage and they've decided to change their mind.

The arrangement has been agreed by other family members. My solicitors has strongly advised against going down this route and quite rightly insists on placing a charge instead, as that is precisely what its designed for.

However, try explaining that to the person involved and its a bit like banging your head against the wall :T And yes, they have had advice from lawyers. A whole range of them from family members, phoning mine up to their own.

Difficult people love a drama.

Unusual situation + difficult individual = creative solution.

xylophone

You need the help of the relative - has he/she had legal advice?

nomadonkey

InMyDreams wrote: »

I still don't understand why you would want to legally bind a family member who is helping you out into such an unfair clause. Would your relation also be getting independent legal advice?

Yes, they have had legal advice. Lawyers in the family and they also have their own. They simply don't trust a charge to be effective. They never have and they never will.

It is on their specific instructions that I'm trying to draw up a contract including the buy-back clause. They want the shared ownership structure where the remainder of the house can purchased back.

However, these contracts are complex. So it's on their suggestion that I'm looking at a more basic contract with 'buy back' clause.

Trust me the family members involved are far more then capable of ripping me off then vice versa. If anyone needs protection in this deal it's me.:eek:

Their getting a significant return from lending me the money.

ValHaller

It would have been better to stay with the original thread, to save going over old ground.

In this case, I think that the best way to approach this would be to go with the flow and purchase 'tenants in common' and support this with a deed of trust which defines the rights of each party. Possibly as there is no lender involved, you could do it all on the 1 deed.

Your relative needs a right to force a sale after a certain time and you need aright to buy them out. It is fairly clear to me that the rights you require could not be given by contract, they would have to be addressed with a deed.

Are you sure that the property is mortgagable?

nomadonkey

ValHaller wrote: »

It would have been better to stay with the original thread, to save going over old ground.

In this case, I think that the best way to approach this would be to go with the flow and purchase 'tenants in common' and support this with a deed of trust which defines the rights of each party. Possibly as there is no lender involved, you could do it all on the 1 deed.

Your relative needs a right to force a sale after a certain time and you need aright to buy them out. It is fairly clear to me that the rights you require could not be given by contract, they would have to be addressed with a deed.

Are you sure that the property is mortgagable?

Thanks so much for this. I'll look into getting a deed of trust written up. I'm assuming that most solicitors can draw this up easily? This is exactly he information I was looking for. Really appreciate it.

I'd also appreciate a recommendation for a London solicitor who can draw a deed of trust up fairly fast.

And yes the property is mortgageable.