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JGM
JGM, Solicitor
Category: Scots Law
Satisfied Customers: 12718
Experience:  30 years as a practising solicitor.
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In financial crisis, a younger friend, K., has bought my

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In financial crisis, a younger friend, K., has 'bought' my home; given me a loan, secured on the property and we have an agreement, signed and witnessed, that gives me lifetime tenure in exchange for a monthly payment and gives him absolute right to the house on my death - I write a codicil to my will - or if I have to move into full-time care.
Is such an arrangement legal? What proportion of the 'rent', if any, needs to be declared to the taxman by him? Would stamp duty be payable when the house was gifted to him, on my death or incapacity?
More importantly, would such an agreement protect me and, more importantly, him, if a creditor were to pursue me for a large debt? Another rich friend, H., bailed me out over a v. expensive property deal, years ago. The developer broke my contract; the SFO are investigating and it may be I get none of my big deposit back. That friend, with no power of attorney, is now in a nursing-home and Ct of Protection are appointing a Deputy. Whilst H. would not demand the capital back, if the Deputy did, would the secured loan protect me and friend K.?
Sorry it's complicated!
Hello,
I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.
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Thank you!
Nicola
Customer: replied 4 years ago.

Yes; happy to wait a few more days.

Hello,
We will continue to look for a Professional to assist you.
Thank you for your patience,
Nicola
Hello,
I apologise as we have not yet been able to find a Professional to assist you. Do you wish for me to continue to search for someone to assist you or would you like for us to close your question at this time?
Thank you for your patience,
Nicola
Customer: replied 4 years ago.

What happens to my £47, Nicola?

Does it seem unlikley that you will find anyone who will take this on?

Please be honest. I' need to know v. soon - may have to pay more to a local solicitor.

Hello,
If you decide to cancel the question, we can issue a refund.
I think it is worth giving it a couple more days.
Thank you for your patience,
Nicola
Thank you for your question.
There is nothing illegal about this. Payment of rent should be deemed repayment of loan so that tax is not incurred.
When he inherits the house there is no stamp duty payable as no money is changing hands.
You at both protected by the fact that he has a security over the property. Other creditors have to take second place after the secured creditor.
Happy to discuss further.
I hope this helps. Please leave a positive response so that I am credited for my time.
JGM, Solicitor
Category: Scots Law
Satisfied Customers: 12718
Experience: 30 years as a practising solicitor.
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