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JGM
JGM, Solicitor
Category: Scots Law
Satisfied Customers: 11418
Experience:  30 years as a practising solicitor.
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I am in the process of helping my daughter (and her family)

Resolved Question:

I am in the process of helping my daughter (and her family) to buy a house by providing a cash subsidy of a third of the house price but I am beyond the age where I could figure on the mortgage so it seems I have no ownership. My wife and I will be living in the house. What is the best way to protect my share of the investment? I should mention that this is in Scotland.
Submitted: 3 years ago.
Category: Scots Law
Expert:  JGM replied 3 years ago.
Thank you for your question.

You should take a second security over the property for the amount you are lending.

So the mortgage company will have a first security for their mortgage and you will rank as second security holder for the loan you at making.

Happy to discuss further.

I hope this helps. Please leave a positive response so that I am credited for my time.
Customer: replied 3 years ago.

Since we will be living in the property are there any other steps that might be taken to secure the nature and balance of our sharing and to secure our 'tenancy' ? I have heard of such things as minutes of agreement and possibly some kind of renewable lease arrangement. Any of this make sense?


 


Bill Moffat

Expert:  JGM replied 3 years ago.
You could do a Minute of Agreement to cover who is going to pay the mortgage and how you are to be repaid your investment, ie, whether monthly or at a later point in the future.

However, the security is the important document as that ensures that the property can't be sold unless you are repaid.

As far as tenure is concerned, again the security will cover you. I don't recommend a lease as you don't want to be tenants. Again if you have concerns this could be dealt with by a Minute of Agreement.
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