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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3655
Experience:  Solicitors 2 years plus PQE
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my son owes us, his parents the amount of forty thousand pounds,

Resolved Question:

my son owes us, his parents the amount of forty thousand pounds, can we secure a security or charge on his property, that if he sells or is made bankrupt we can secure the money owed to us
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Hi
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Does he dispute this money is owing?
Will he give you a charge voluntarily?
Is there any equity in the property?
Kind regards
AJ
Customer: replied 2 years ago.

he does not dispute the amount owing, I think that there is equity, and he will give a voluntary charge

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
A voluntary charge will be the best way to go as it will save everyone time and expense.
What you need to do is the following:
1. You need a forbearance agreement - this will say that he acknowledges the debt, and in consideration for him giving you a charge you agree not to enforce the debt until the property is sold, or if he goes insolvent;
2. You will need the consent of his mortgage lender in order to register the charge;
3. The charge will then have to be registered at the Land Registry.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/330008/CH1.pdf - This is a link to a template legal charge, however if there is any risk your son might go bankrupt in the next 2 years, you must go and ask a solicitor to do this.
The solicitor will need to properly advise both parties and ensure that you have given consideration (consideration is what makes an agreement legally binding) in order to get the charge form you son and properly register it. If there is any suggestion you have just signed a charge document without a proper forbearance agreement as I described above, if your son then wne t bankrupt a trustee in bankruptcy could potentially avoid the charge.
This is not a complex matter and you could ask a local solicitor to assist you with it.
I look forward to hearing form you.
Kind regards
AJ
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