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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10585
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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I hold a declaration of trust on my sons house for £49000.

Resolved Question:

I hold a declaration of trust on my sons house for £49000. If he goes bankrupt and the house is sold. Will I be next to be paid after the mortgage has been cleared that is before credit card debts etc
Submitted: 3 years ago.
Category: Law
Expert:  Aston Lawyer replied 3 years ago.
Hello and thanks for using Just Answer.
My name is ***** ***** am happy to assist you with your enquiry.
Do you know if your financial interest in your Son's house is protected by way of a Restriction registered at the Land Registry?
I look forward to hearing from you.
Kind Regards
AL
Customer: replied 3 years ago.

Dear Al. Aston Lawyer, there was no registration at the land register ofice

Expert:  Aston Lawyer replied 3 years ago.
Hi Barry,
Thanks for your reply.
As you have not registered a Restriction at the Land Registry, your interest ranks the same as any other unsecured loans/debts your Son has.
It is normal for your Solicitor to have registered a Restriction to protect you in the event of your Son selling the property/the property being repossessed. Basically, it acts as a Notice to you in that no Sale can proceed without your consent. If this is done, and I recommend it is done, then after the Mortgage and any other previously secured loans (ie loans registered against the Property at the Land Registry) are paid, you would be next in line to receive whatever is left/your entitlement.
If nothing is done, then I'm afraid the Declaration of Trust has no priority over any credit cards/unsecured debts.
I hope this assists and sets out the legal position.
Kind Regards
AL
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