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C.Cornel
C.Cornel, Lawyer
Category: Law
Satisfied Customers: 1172
Experience:  Senior Lawyer at Legal Group
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My son is to loan my wife and I £170,000 to enable us to

Customer Question

My son is to loan my wife and I £170,000 to enable us to complete the purchase of a new property valued at £700,00. There is to be 0% interest and payable upon the death of the survivor when the property is sold. Is there a simple loan agreement we could complete to formalise? Also would the loan agreement be accepted in Probate should the survivor have local authority care fees to be repaid? My concern is that we must ensure the loan is repaid when the property is sold prior
JA: Where are you? It matters because laws vary by location.
Customer: WE are in Hertfordshire
JA: What steps have you taken so far?
Customer: My son is moving on to another property and we propose to buy his existing property when we have sold ours. Because this is a family transaction we need to get guidance before we go any further. My wife and I will probably need to change our wills once the transaction is completed
JA: Anything else you want the Lawyer to know before I connect you?
Customer: Any new will should make sure the estate is divided equally between my son and daughter after the loan repayment is taken into account. Phew! I hope thats clear
Submitted: 7 months ago.
Category: Law
Expert:  C.Cornel replied 7 months ago.

Hello.

Given the loan amount, I would advise to draft and prepare a customized loan agreement, based on your circumstances.

Thank you.

Customer: replied 7 months ago.
Thanks. What sort of cost are we looking at for that?
Expert:  C.Cornel replied 7 months ago.

Depends on the complexity of the agreement, medium complexity, I would say around £4000-5000.

A simpler agreement would be cheaper.

Thank you.