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Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10626
Experience:  Barrister 17 years experience
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I want to lend a friend in the carribean £50,000 pound for

Customer Question

I want to lend a friend in the carribean £50,000 pound for an extention on their home which I could use as a holiday home for free. On the sale of the property I would get my £50,000 back and a percentage of profit of the whole property if it had gone up. Can this all be written into a legal contract. The country in question is Trinidad and Tobago which follows the British legal system
Submitted: 1 year ago.
Category: Law
Expert:  Buachaill replied 1 year ago.
1. Dear Kerry, there is one of two methods of effecting this transaction. The first is to simply give you a defined percentage share in the property. In this way, your name will appear on the property register and upon sale you will be entitled to that proportionate share of the property's sale price. Alternatively, if you wish to simply get your 50k and a share eg 10% of the sale price, then you would register this interest as a burden on the Folio so that the property may not be sold without you getting your share of the proceeds. You can draw up a simple contract in writing to reflect this arrangement. However, it is essential to register your interest as a burden on the land folio in order to safeguard your rights, so that the house does not get sold (or even mortgaged) without you getting your share.
Expert:  Buachaill replied 1 year ago.
2. Please Rate the Answer as unless you Rate the Answer your Expert will receive no payment for answering your Question.
Customer: replied 1 year ago.
Thank you for the advice, I would be doing this in Trinidad and Tobago, I believe they follow exactly the British law system, I have some knowledge as I lived their for four years and adopted a son while their could you find out any more info concerning their legal system
Expert:  Buachaill replied 1 year ago.
3. Dear Kerry, I would advise you to seek the assistance of a local lawyer in Trinidad & Tobago. You will need their assistance to register a burden on the Folio. It is always best to get professional help so there are no errors. Ultimately, this ensures there are no future problems.
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Customer: replied 1 year ago.
Thank you for that information I have contacted a Legal Firm in Trinidad. Would it be best to register a Burden of Folio in case the person defaulted on the mortgage. If I was on the property register could I be liable for costs on the mortgage/house?
Expert:  Buachaill replied 1 year ago.
4. Dear Kerry, the idea behind registering a burden on the folio is it prevents the person selling or mortgaging the property. However, if the person defaults on the mortgage, the burden also ensures you can then enforce the loan amount against the property and it cannot be sold without the arrears of the mortgage being paid. Secondly, if you were on the property register, then you would be liable for a mortgage of the entire property. If it is the case that the party buying the property is getting a mortgage and you are providing cash, then you are better off register your interest as a burden on the folio. The only circumstances where I would advise you appear on the property register would be if the bank lending the money to the person who is taking the mortgage is happy with getting a two thirds or a half share of the property for the mortgage. However, most banks shy away from this approach. A bank generally wants the entire property as security and not just part of it.