how to finance purchase of ben insurance from family

nwest_girl

hi this is first post on here, partner has gone bankrupt, ben interest in property will be approx 15,000 our son will try to borrow the amount needed not to have to sell home, his credit is very good. Would he have to get a loan or as he will officially own percentage of property would it be a mortgage, thanking you in advance.

silvercar

I'm assuming that there already is a mortgage on the property, so it will have to be a second charge on the property if you want to finance it as a mortgage/ secured loan. To do this your son would have to go on the deeds and become part owner of the property. I don't know what view your existing lender would take of this.

The other option is for him to arrange an unsecured loan, that you could agree to repay on whatever terms you like. You could get a solicitor to draw up an agreement if you wanted to. You could view this either as him lending you the money to buy out the beneficial interest or him taking a stake in the home.