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Alex J.
Alex J., Solicitor
Category: Property Law
Satisfied Customers: 3671
Experience:  Two years conveyancing experience.
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I am wanting to help a friend buy a property. We will buy

Resolved Question:

I am wanting to help a friend buy a property. We will buy as co-owners, but he will live in the property and pay me rent for my share. We would set up a deed of trust to declare the shares owned. Can the deed of trust include a provision that he occupies and pays me rent? If he were to later fail to pay rent, could I take court action for an order to sell the house?
Submitted: 1 year ago.
Category: Property Law
Expert:  Alex J. replied 1 year ago.
Thank you for your question and welcome.
Will your friend live there alone?
Will your friend obtain a mortgage?
Kind regards
AJ
Customer: replied 1 year ago.
He will live there with his wife, who will also be a joint owner, and his two children. There will be no mortgage, he is putting in £100,000 and we will put in £200,000.
Expert:  Alex J. replied 1 year ago.
Hi
Thank you.
Everything you have described is possible. You can include a right to charge rent and an obligation for him to give up the property in the event that he goes into arrears.
The problem you have is if he refuses to leave you will need to go to court and get a possession order. A court is very unlikely to grant a possession of young children are living in the property.
You may be better served including a provision that allows you to charge interest in the event that he goes into arrears. He won't be able to register a charge against the property without your consent so at least your share will be protected.
As another alternative you could get him to pay you a deposit for any rent arrears?
Kind regards
AJ
Customer: replied 1 year ago.
Many thanks, ***** ***** very helpful. I think allowing an interest charge should be ok - at least in the worst case scenario I can force a sale once the children are 18. One further question - is it possible for us all to give consent in the deed of trust for the house to be sold in say 15 years time if any one of us wants it, or would this be overridden by the wishes of the parties concerned come that time?
Expert:  Alex J. replied 1 year ago.
Hi
Thank you.
Absolutely you can agree an exit strategy. What I would suggest though is you agree a mechanism for valuing the property to avoid future arguments. For example you agree to appoint a local estate agent to provide an independent valuation which you must be bound by?
Kind regards
AJ
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