Borrowing Large Amount From Parents

Bexm

Hi.

My parents have agreed to lend me a large amount (£xx,xxx) which I will be paying back over the same amount of time as our mortgage.

I will be paying them about £200 a month for a number of years.

It is not a gift, but should they pass before the loan is repaid it will be written into their will that I will inherit the remaining amount.

(They are not unwell or anything and we do not expect that to happen, but they are in their 70s)

We want to do it properly with a proper loan agreement but don't know how?

Does this need a solicitor to write one up or can we write something and it be official?

Any advice would be appreciated.

flaneurs_lobster

Presumably you/they will need a solicitor to amend your parent's wills as per your post, would probably be expedient to have the loan agreement drawn up at the same time?

The mortgage is already in place? None of this money is involved in the property purchase?

Bexm

Yes the mortgage is already in place.

Didn't consider that, sounds like a plan .

Keep_pedalling

Mortgage provides don’t like family loans, so either you parents are going to have to actually make this a gift, or you are going to declare it as a gift which would technically be mortgage fraud.

What is your parent’s position with IHT?