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Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 34278
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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If I lend my niece £17000 as a deposit on a house and am a

Resolved Question:

if I lend my niece £17000 as a deposit on a house and am a second charge on the deed can I force sale in 5 years time when I want the debt repaid?
Submitted: 1 year ago.
Category: Law
Customer: replied 1 year ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  Clare replied 1 year ago.

Thank you for your question

My name is Clare

I shall do my best to help you but I need some further information first

Has the Charge Deed been drafted - what does it say about payment?

Customer: replied 1 year ago.
not that I am aware of. My niece is simply asked me to sign a letter to her building society saying :
Dear SirsI am writing to confirm that I, Mark Leggett am lending my Niece Joanna Leggett £17,000 to help towards the deposit so she can buy her first home. I do not intend to live in the property as I have my own home.I am not charging any interest on this loan and will not require the loan to be repaid until the property is sold.A second charge will be added to the deeds in my favour for the £17,000.Yours FaithfullyMark Leggett
Customer: replied 1 year ago.
Intially the letter the draft letter said in the first paragraph gifting rather than lending which I have said I want amending
Customer: replied 1 year ago.
She is proposing to draw up a seperate loan agreement as attached . My question is is my loan secured for repayment in 5 years. ie: could I enforce the loan agreement
Customer: replied 1 year ago.
LOAN AGREEMENTThis agreement details the loan made by Mr Mark Leggett (the Lender) to Miss Joanna Leggett (the Borrower) to help with the deposit towards the purchase of her own home.Lender: Mr Mark Leggett-
Borrower: Miss Joanna Leggett-
Loan Amount: £17,000
Property Address: 6 St Edmonds Court, Harwich Road, Colchester, Essex. CO4 3BT.
Date of Loan: ********
Date Repayable: On or before 1st January 2022.
Loan Security: A charge on the deeds of the above purchased property.
Total repayable: £17,000.1. The loan of £17, 000 will be deposited in an account as specified by the borrower, no later than 14 days prior to the property’s Exchange of Contracts.2. The borrower agrees to secure this loan via a Charge against the property being purchased. This Charge on the Property Deeds will be arranged by the solicitor at the time of purchase. The borrower agrees to cover all costs of this arrangement and to cover all costs of removing the Charge on the property when the loan is repaid.3. The borrower agrees to repay the full amount of the loan amount on or before a period of 5 years from the property purchase.4. If the borrower at the date of the termination of the loan agreement is not able to finance by other means the repayment of the outstanding loan, the borrower will sell the property to enable the charge on the deeds to be liquidated and the balance of the loan to be repaid.5. The full amount of the outstanding loan is repayable in the event of the property being sold prior to the 5-year loan period.6. Although interest is not payable as part of this loan agreement, the lender has proposed a discretionary ex gratia payment equivalent to an interest rate of 1.5% compound interestMark LeggettSigned _________________________ Date ___________________Joanna LeggettSigned _________________________ Date ___________________This agreement has been witnessed by:Name: ____________________________________Address: _____________________________________________________________________Signed _________________________ Date ____________________
Expert:  Clare replied 1 year ago.

My apologies for the delay

It is unlikely that the Mortgage Company will accept this as they generally need you to express it as a gift

You would then need to have the Legal Charge drawn up signed and Registered after the completion of the purchase, and a separate agreement between you and your niece detailing this.

The terms that you have set out will allow you to force a sale should the need arise.

However you will need to check that the Legal Charge deed is correctly drawn up.

I hope that this is of assistance - please ask if you need further details

Clare and other Law Specialists are ready to help you