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2nd charge or declaration of trust?
Yoite
Posts: 9 Forumite
Hello,
My parents are giving us a large sum for our deposit, however they would like to have some rights on the property - basically own 35% of the property (the money they give us is 35% of the property value).
As I understand there are 2 ways of doing this:
Either they register a 2nd charge on the property, then their name would be on the deed.
Or draw up a declaration of trust, where we say that they have a 35% share of the property. Then their name would not be on the deed.
Do I understand the situation correctly? So which option is better for us, and which is better for my parents? Which rights would my parents have in either case?
By the way, I know that the mortgage lender would have to agree to this, and we already found one who will.
Many thanks!!
My parents are giving us a large sum for our deposit, however they would like to have some rights on the property - basically own 35% of the property (the money they give us is 35% of the property value).
As I understand there are 2 ways of doing this:
Either they register a 2nd charge on the property, then their name would be on the deed.
Or draw up a declaration of trust, where we say that they have a 35% share of the property. Then their name would not be on the deed.
Do I understand the situation correctly? So which option is better for us, and which is better for my parents? Which rights would my parents have in either case?
By the way, I know that the mortgage lender would have to agree to this, and we already found one who will.
Many thanks!!
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