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Madhu Pal
Madhu Pal,
Category: Law
Satisfied Customers: 468
Experience:  Solicitor at HPLP Solicitors
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Propriety law, Scotland, looked into legal and beneficial

Customer Question

propriety law
JA: Where is this? It matters because laws vary by location.
Customer: Scotland
JA: What steps have been taken so far?
Customer: looked into legal and beneficial ownership
JA: Anything else you want the Lawyer to know before I connect you?
Customer: My partner currently is the legal owner of a propriety.. my Italian family has got some money to give me to put into this propriety so that we share ownership. Can we have a legal contract that stipulates that we have both 50% legal ownership, but also build in some clauses of Beneficiary ownership
Submitted: 10 days ago.
Category: Law
Customer: replied 10 days ago.
To add more: My partner is currently the legal owner of the propriety, but her dad bought the house and placed a clause that prevents my partner from selling the house without his consent.. (she is kind of paying back rent to him, like she would pay back a family 0 interest loan)..
let's lay the value of the house is £230k..My partner's dad is happy to pass on the beneficiary ownership to both me and my partner, so that we can become both 50% shared owner..However I would be able to put in £100k and my partner £30 ... the other £100k we would still have pay back a loan to my partners dad.
Expert:  Madhu Pal replied 10 days ago.

Good afternoon, can i check whether there is also a mortgage on the property or just the loan to your partners dad?

Customer: replied 10 days ago.
We were wondering if it is possible to be both 50% legal owners, but set some beneficiary ownership clause in any sort of legally binding documents that states that:
1) in case the house is sold:
- Both parties get back what they originally put in (e.g. me £100k and my partner £30k).
-That and profit made on the house due to increase in value will be shared 50/50
-That both me and my partner are paying back 50/50 monthly a loan to my partner's father and that if in (let's say) 15 years we have paid back £80k out of £100k, then from the proceeding of the house sale both me and my partner will get back £40k and her dad will get back £20kDoes this makes any sense?
Customer: replied 10 days ago.
no there is no mortgage (just a family internal loan)
Customer: replied 10 days ago.
I would rather not switch to a phone call just now as I am trying out this service) thanks for suggesting though.
Expert:  Madhu Pal replied 10 days ago.

In which case yes it is absolutely possible for you to both to become legal owners. Your partner would enter into a transfer of equity to transfer her 100% share to be split 50/50 between you both.

At the same time request the solicitor you instruct you draft a Declaration of Trust for you both. This Deed can stipulate all the bullet points you have listed in as much detail as you would like so that each of yours shares are protected as you wish.

Customer: replied 10 days ago.
would it be possible for my partner to retain 100% legal ownership, but I would become a 50/50 beneficiary ownership with the same clauses above? What would be the implication in the case of break up and would the cost involved to stipulate the Deeds be less or more? would this be less safe to safeguard individual shares? I do not understand the difference too well
Expert:  Madhu Pal replied 10 days ago.

It would be possible but then you are less protected. Even though being a beneficial owner guarantees you your investment legally - it would be a legal battle to enforce this if there were any disputes. Whereas if you were a joint legal owner she physically could not make any decisions to the property without you.