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JGM, Solicitor
Category: Law
Satisfied Customers: 12179
Experience:  30 years as a practising solicitor.
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Hi, I want to borrow some money from a friend. I want to give him a property as a guarantee but it has a mortgage and I want him to have control of the property if I went bust. Is that possible

Thank you for your question.
You would be better to give him a second charge over the property. If you went bust or otherwise defaulted he could repossess the property and sell it, repaying the first mortgage holder and then taking what he is due, accounting to you for any residual balance.
You can transfer title in the property to him without paying off the existing mortgage hence a second charge is the way forward.
Happy to discuss further.
Please leave a positive response so that I am credited for my time.
Customer: replied 3 years ago.

Is there any time limitation ? eg if I did it today and went bust monday is there a law to stop that ? Does the person have to prove the debt ?

He is lending me an amount but I am guaranteeing him more than that for his trouble

No there is no time limit. The charge is registerd against the property and stays ere until discharged by repayment of the debt. The person would normally sign a document confirming the amount due. If arrears accrued on repayments the loan could be called up.
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