Can you just confirm whether or not the sum is to be secured against the property please?
Have you told your conveyancer that he is contributing the money and, if so, what did they say?
No i have not told anyone apart from Mortgage broker and it wont be secured against the property.
You should tell your conveyancer and mortgage broker. You will probably be in breach of the mortgage conditions if you do not. It may or may not affect their willingness to lend to you but, as I say, it would probably be a breach which they would be entitled to enforce were they to find out.
If the intent is that the loan is to be clearly defined but simple in structure and will enable either party to sue upon it then it is not essential that you instruct a solicitor. Provided you use a sensible template and the terms are clear, there is a statement that you intend to give legal effect to the terms of the agreement and you both execute it (ie. sign and date it, preferably with two independent witnesses then it will be legally binding upon you both. Have two copies, execute both with each party keeping a counterpart to retain.
If you are both in complete agreement as to the terms then it can be quite straightforward, but if you start to disagree on terms or either of you suspect the other is unclear on the application of the terms then I would advise going and taking it to a solicitor. Their fees would probably be in the region of £150.00-250.00+Vat.
In order for one to sue the other though it is not essential in law that you have a written contract (ie. although as a solicitor I would always advise having one) - people sue on oral contracts all the time if it is obvious from the evidence/circumstances that an agreement was in existence between the two parties.
If this is useful please kindly click accept so that I may be rewarded for my time. It will be gratefully received and you will be free to ask follow up questions.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).