Charge on property
Author
Discussion

afjones1960

Original Poster:

4 posts

118 months

Friday 30th December 2016
quotequote all
HI.
Can anyone help with a little advice about placing a first charge on a property? My wife and I just lent a sum of money to our daughter so that she could buy a property outright. She is going to repay us over 15 years at 0% but she is young and single at the moment so we want to place a charge on the property so that she cant do something stupid....like marry a loser or secure a loan for a BMW etc.... without our approval.
Anyone tell me how to go about this without spending a fortune.....solicitors seem to want to charge £2500 or so just to draw up a simple mortgage agreement and place the charge on the Land Registry register.

thanks.

PurpleMoonlight

22,362 posts

187 months

Friday 30th December 2016
quotequote all
£750 - £1000 plus VAT & disbs would be more appropriate in my experience.

It won't stop her marrying though.

afjones1960

Original Poster:

4 posts

118 months

Friday 30th December 2016
quotequote all
Thanks. I don't mind the marrying bit its the divorcing bit that concerns me. Just want to protect my asset until it is paid for.

Burwood

18,718 posts

276 months

Friday 30th December 2016
quotequote all
Bit late but wrapping it into a trust would have protected the divorce situation too.

afjones1960

Original Poster:

4 posts

118 months

Saturday 31st December 2016
quotequote all
Is it too late? We haven't exchanged contracts yet.

cashmax

1,533 posts

270 months

Saturday 31st December 2016
quotequote all
This is a simple job for any legal practice and it involves completing a basic form and registering the charge with the LR.

I have done this several times and it's crucial for all sorts of reasons, but as mentioned by someone else, wrapping it a trust too would mean that control is maintained regardless and also has some significant long term tax flexibility, particularly in the IHT area. A little complex, but plenty of specialists out there.

afjones1960

Original Poster:

4 posts

118 months

Saturday 31st December 2016
quotequote all
I do not want control as such. just want first charge over the property such as a building society would have if they had lent on the property. I don't foresee any problems vis a vis repayment and anyway I would not foreclose so the mortgage agreement needn't be too complex. I just don't want to lose out if she marries/divorces someone or takes out a loan secured on the property.
Also what is this trust that has been mentioned?.

Thanks.

PurpleMoonlight

22,362 posts

187 months

Saturday 31st December 2016
quotequote all
Don't worry about the trust, you would just be over complicating matters and expense.