Buying property and second charge

Dubito_ergo_sum

Hi

Would below scenario work ?

Person AAA buys a house.
A month later they sell the house to person BBB at below market value.
Person AAA then places a charge on BBBs place for the difference between the real value and the value sold at.
A legal agreement would stipulate that AAA would only ever want their money back - second charge - when and if the house is sold - no repayment is due until such a time.
Of course legal agreement would clarify what happens if one of them dies etc.

AAA and BBB are not related or married or in a relationship.

Would this work ?

Thanks a lot

amnblog

Yes, if you enjoy prison food

Dubito_ergo_sum

FTB so please dont shoot down.
I have seen various threads where parents / relatives sell property at discounted prices so i thought above would be ok ?
Which law / regulation would this not comply with ?

amnblog

Dubito_ergo_sum wrote: »

AAA and BBB are not related or married or in a relationship.

This looks and smells like money laundering - that is the problem.

Dave_Ham

Forget the detail, this is a non runner to start with.

A new lender will not accept a transaction at under value where non relatives are involved (or in very exceptional circumstances)

Furthermore you cannot buy (assuming with a mortgage) within 6-12 months of a sale (aside from 4-5 lenders)

Add in it just feels a bit moody as cannot understand the motivation, I think this is as suggested a non runner.

Dubito_ergo_sum

i see.
The money would be from my partners brother and the sum is traceable through his bank accounts - ie this no dodgy cash deal.

The reason we are not looking at a joint mortgage is because my partners credit record is less than ideal and mine is spotless and he is older so would considerably limit the mortgage term as even with pension forecast etc till 75 we wouldnt be able to get anywhere near the mortgage term i can get on my own. I have read below that its possible for a partner to co-own a property without being on the mortgage, if we did that, would his brother helping us out work as they are related or is it still no go area ? Im just trying to find a way, thanks for any pointers

https://forums.moneysavingexpert.com/discussion/565227

Dave_Ham

That is from 2007, the financial world has changed a bit since then.

Subject to the detail, could you not put in a joint application?

Have you definitely exhausted doing this traditionally with you both on there with a non-highstreet lender?

The answer to all of this is to get some formal advice from a broker to be honest.

amnblog

You are heading for a fall without some sensible advice.

Making up your own plan is not the way forward.

Dubito_ergo_sum

We will get together with his brother over the next few days to discuss the details, once we have got those we will look for a mortgage adviser as I fully appreciate this is a complex case and any decisions now will impact on my / our finances for the next few decades, so we really, really need to get this right.