Ask a Law Question, Get an Answer ASAP!
Are you paying off all of the mortgage or just part of it?
How would you go on if your friend decided to never sell the property?
As the mortgage has such a short period to run, why are you doing this?
Is the money which you are proposing to pay, going to be repaid?
If we have the full background detail and your concerns it would help please.
The existing lender would not let you go on the title deeds unless you became party to the mortgage which means that you would have the liability for it along with your friend. To secure your interest in the property which you have by way of the mortgage, you could register a second charge against the property but only if the first mortgage lender does not have a restriction. If it does have a restriction, your friend is going to need the lender’s consent. They would only give consent if there is any requirement for your friend to repay the money you are lending at any time prior to the sale of the property.
If you can get a charge against the property to protect, you would need to register a restriction against the property to prevent it being sold without you getting noticed.
It is essential that you have a deed of mortgage drafted which details exactly how much you are putting in and exactly how much you are getting out as a percentage, when the property is sold. It is also essential that your friend takes legal advice from the solicitor that you are not involved with.
Can I clarify anything for you?
Please rate the service positive. It’s an important part of the process by which experts get paid. It does not cost you anything but helps me greatly.
Thank you. When you get a moment please don’t forget to rate my answer 3-5 stars so that I get paid. The thread remains open if anything crops up.