2nd charge or declaration of trust?

Yoite

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!!