Loan against protected property trust

Testaliger · 9 January 2019 at 3:45PM

Hi
Can anyone’s tell me whether it’s possible to borrow against my part of my mum’s property.
When dad died, he left his half of their property to his two children (me being one), so, in effect I own 25% of a property worth approx. £180-200k
My own property needs some work doing urgently, for which I need to find 20-25k. Whilst I have some of this I need to borrow approx 15-20k.
Has anyone any experience of borrowing against their interest in someone else’s property?
Thanks in anticipation
Testaliger

BrassicWoman · 9 January 2019 at 4:30PM

It's not great security for a loan because how would they sell it if you didn't repay?

I would look for a normal loan.

Bermonia · 9 January 2019 at 4:42PM

Any lending would have to be secured on the whole of the property (as already stated what’s the point in security that can never be initiated upon default) and would therefore require the agreement and involvement of all parties - would recommend sourcing funding via another method

MEM62 · 9 January 2019 at 5:02PM

As you cannot physically separate your bricks from your mums bricks the loan would have to be secured against the whole property. Your mother would probably, and rightly, object to a loan being secured on her home in that manner - particularly if it is otherwise unencumbered.

Any reason you do not want to put your own home at risk?

Testaliger · 17 January 2019 at 8:03PM

Until we complete the work necessary there isn’t the equity in our property to cover a further loan.

Bermonia · 17 January 2019 at 8:15PM

Bog standard loan it is then... once the work is completed use the increase in equity to release funds and repay the loan.

DCFC79 · 17 January 2019 at 8:26PM

How is it 20k - 25k, is it something thats been put on the back burner and got worse ?

Loan against protected property trust

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