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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 30009
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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My daughter lives in a house we own. She wants to buy it and

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Hi my daughter lives in a house we own. She wants to buy it and we would like to allow her to pay like a mortgage and then after the 15 year term she we pay us the outstanding balance using her LISA and we sign the house over to her. Can we do this legally please?
JA: Where are you? It matters because laws vary by location.
Customer: South Wales
JA: What steps have you taken so far?
Customer: None Apart from her having LISA
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: She has a partner but he would only part of final hand over if they are still together after the 15 years

Hello and thank you for your question. My name is ***** ***** I will be very pleased to assist you. I'm a practising lawyer in England with over 15 years’ experience. Please be aware that although I will endeavour to reply to you promptly, I am also in full time private practice and so I may not be available to respond immediately and it may also take me a few minutes to prepare a reply. The site will notify you as soon as I respond. I look forward to working with you to answer your question fully.

  1. May I confirm if you would wish to be a party to the mortgage or would your preference be that your daughter is the sole borrower on any mortgage please?
  2. is your daughter's financial status such that she would be able to apply for a mortgage on her own for the amount involved?
Customer: replied 14 days ago.
We don't want her to have a mortgage as she would not be paying interest to us.
Customer: replied 14 days ago.
I'd rather stick to this as I am looking after my elderly mother and get very little private time
Customer: replied 14 days ago.
I'd also like to know if we went ahead how much you would charge to draw up a contract please

thank you. Regarding your comment that you do not want your daughter to have a mortgage, I understood from your initial question that she would need a mortgage? it may be that I've misunderstood precisely what your proposal is. Would you be able to confirm in a little more detail precisely what is envisaged. It may be hopeful if you mention some figures the context - i.e. what the property you believe is worth, how much your daughter would pay for it and when she would pay what amounts and how she would finance those payments?

Customer: replied 14 days ago.
The property is worth £120k, she would pay us monthly around £520. At the end of the 15 years she would give us the remaining £25k from her and her partner's LISA. We would then sign the house over to them. Does that make sense?
Customer: replied 14 days ago.
Her partner is self employed and they will be paying us back from their wage and profit
Customer: replied 14 days ago.
They have a building and electric installation company

thank you. Is there presently a mortgage on the property in your name?

Customer: replied 14 days ago.
163;13k outstanding but if that's an issue we can pay it off

thank you. From what you describe, the simplest approach is likely to be to pay off the existing mortgage and transfer the property to your daughter subject to a legal charge in your favour (like a mortgage but the mortgage would be held by you) together with a loan agreement ( albeit at zero interest) which sets out the terms of repayment that your daughter will make to you. Once full repayment is made under the terms of the loan agreement the charge can be removed ( or at such earlier time entirely at your discretion).

If repayments were not made, again entirely at your discretion, you could serve a default notice upon your daughter and then seek to repossess the property from her should you wish to do so.

A solicitor would need to set the above arrangement up but in principle it is relatively straightforward to do so.

Customer: replied 14 days ago.
Thank you does that mean that if her partner left he couldn't claim any of the house until it was paid in full? Do you undertake such contracts and if so at what cost? Thank you

Are they married please?

Customer: replied 14 days ago.
No

Thank you. where they are not married, her partner will have a claim in respect of anything they have contributed towards the property in terms of capital - so for example if they made any payments back to the loan you give your daughter, her partner may be able to then subsequently claim such sums if they were at a later part company. An unmarried partner will not have claims against them partners own assets expect in circumstances where they have children together and the potential claim is made by the parent with custody for the maintenance and welfare of those children. They would have no claim against you personally in any event.

Customer: replied 14 days ago.
Thank you

I'm glad the above answers all your questions for now. If you have any follow up questions please revert to me.

Thank you again for visiting JustAnswer.

I hope we will see you again in the future.

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